Assocham urges govt to set up Aviation Economic Regulator

Industry chamber Assocham on Friday urged the government to set up an Aviation Economic Regulator, citing the case of an unprecedented hike in non-aeronautical service charges at airports.

NEW DELHI: Industry chamber Assocham on Friday urged the government to set up an Aviation Economic Regulator, citing the case of an unprecedented hike in non-aeronautical service charges at airports.

"There has been an unprecedented increase in non- aeronautical service charges since the privatisation of airports in the country, which has burdened the airlines that are already reeling under high aviation turbine fuel prices," Assocham Civil Aviation Committee Chairman Jagdish Gupta told reporters here today.

The charges for 300 sq meter were Rs 3,000 only six months ago which is around Rs 1,50,000 today, according to the chamber.

Seeking a review of handling charges like hanger space, parking charges, ticketing counter space and back-up office space, airport development fees, Gupta urged the government to set up an Aviation Economic Regulator.

The rising jet fuel prices have already severely affected the financial health of the airlines, said Gupta. The chamber has also pointed out that procedure for grant of operating permit to regional and small operators by the Directorate General of Civil Aviation should be simplified and be like that followed for national airlines.

There should also be a single window clearance system instead of making the applicants move from one office to other which makes the system cumbersome and prone to different interpretations by individual officers.
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The ASSOCHAM has also sought that regional operators should be given some protection by prohibiting bigger players to operate on the routes developed by the small operators.
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