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Airline operators owe Airports Authority of India Rs 11 billion

Airline operators owe, the country’s airports operator, Airports Authority of India (AAI) Rs 11 billion, of which Air India alone has to pay Rs seven billion, news agency IANS has reported. “We are in the process of settling this issue with the airlines. We know they are facing problems due to high operational costs and downturn in the economy,” V P Agarwal, Chairman, AAI told reporters on the sidelines of an aviation conference.

Agarwal said that AAI will give more time to airline operators for settling their dues, adding, that they were facing a similar crisis. Regarding the airports development fee, which the government has approved for New Delhi and Mumbai airports, he said, “Other airports that are being developed by AAI will also have similar charges. This is being done to raise funds for upgrading the airports.”

About 20 more airports, including those at Kolkata and Chennai, are being upgraded by the AAI at an investment of Rs 120 billion. Delhi International Airport Ltd (DIAL), the developer of the IGI Airport, has started charging Rs 200 from domestic passengers and Rs 1,300 from international travellers as development fee from the first of this month. A GVK-led consortium that is upgrading the Chhatrapati Shivaji International Airport in Mumbai will levy Rs 100 per trip on domestic passengers and Rs 600 on passengers flying abroad from April 1, 2009. Domestic passengers already pay Rs 375 and Rs 260 to fly out of the Greenfield airports at Hyderabad and Bangalore, respectively, while international passengers are charged Rs 1, 000.

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