Development fee at airports modernised by AAI,says Patel

Even as the global airlines’ body International Air Transport Association (IATA) criticised levying of development fees for financing airports in India....

Written by ENS Economic Bureau | New Delhi | Published:February 27, 2009 1:35 am

Even as the global airlines’ body International Air Transport Association (IATA) criticised levying of development fees for financing airports in India,civil aviation minister Praful Patel today said such fees could be imposed even at airports being modernised by state-owned Airports Authority of India.

Refusing to react to IATA’s comments,Patel said the massive aviation infrastructure required in India “cannot be made on such a scale without contribution from passengers and other stakeholders”. Equating the development fee with toll taxes on roads and highways,he said the large scale in which infrastructure was required to be developed envisaged huge costs.

“Development fees can be levied at Kolkata,Chennai,Goa,Ahmedabad and Thiruvananthapuram airports,which are being developed solely by the AAI,” Patel said. He said all these issues could be looked into later by the Airport Economic Regulatory Authority,which has been approved by Parliament and is likely to be set up soon.

In a statement,the IATA criticised the airport development fee (ADF),being levied on passengers departing from Delhi airport from March 1,2009,at the rate of Rs 200 per domestic passenger and Rs 1,300 per passenger travelling abroad.

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