Airline operators oppose proposed hike in throughput fee

HYDERABAD: Domestic and international airline operators have opposed the proposed move by the Airports Economic Regulatory Authority (AERA) to allow a 5 per cent hike of Fuel Throughput Fee in as many as ten airports including Mumbai and Delhi.

Throughput fee is the payment made by fuel suppliers to the airport developer.

Airports Authority of India (AAI), Mumbai International Airport Limited (MIAL), Cochin International Airport Limited (CIAL) and Delhi Internatioanl Airport Limited (DIAL) on April 1 revised the throughput charges based on the commercial agreements between them and the Oil Companies.

However, the AERA instructed them to stop implementing revised fee until their request for approval for such revision is decided by the Authority.

AERA, which took up the matter, proposed an increase of 5 per cent and sought opinion and suggestions from the stakeholders.

While Airfrance said the jet fuel prices in Indian airports are one of the highest in the world for the past so many years, another major airlines British Airways said the throughput charges at Indian airports, which were proposed, do not appear to follow certain principles.

"The sole existence of the throughput fees at Indian airports in debatable. Those fees are not related to any costs and cannot be justified. It is considered as a market access fee which for your information is illegal in EU." Airfrance informed the AERA.