The Airport Economic Regulatory Authority of India (AERA) has recommended hiking airport charges at Mumbai's Chhatrapati Shivaji International Airport by seven percent. The revised tariffs would be applicable from May 1, 2016.
Mumbai International Airport Ltd (MIAL) and the GVK group, which operate the airport, had initially demanded a 104.82 percent raise in the airport charges, the Mint reported.
Airport charges are imposed to finance capital expenditure and to pay for the airport maintenance. The charges are revised after a period of five years. The duration is called a control period. These charges are passed on to airlines and they, in turn, pass it on to travellers flying or out to the airport.
MIAL is a joint venture between the Airport Authority of India (26 percent) and the GVK group (74 percent).
The first control period of Mumbai International Airport was from 2009 to 2014.
Over the last three years, airport charges have increased by 346 percent in New Delhi, 164 percent in Mumbai, 269 percent in Chennai and 385 percent in Kolkata, the Mint report added.
The Mumbai airport was upgraded and modified by the GVK group. It witnessed passenger traffic to the tune of 34 million between Jan-Dec 2014, GVK group said on its website.
