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Thursday, September 19, 2024

Airfare hike not linked to rise in airport charges ACI

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New Delhi

Airport charges play a key role in the commercial aviation sector, essential for infrastructure development, according to Airports Council International (ACI). Despite concerns raised by the International Air Transportation Association (IATA) about rising airport charges, ACI stated that these charges are crucial for maintaining and expanding airport facilities.

Stefano Baronci, Director General of ACI Asia Pacific & Middle East, emphasized that airport charges support the development of infrastructure needed to handle future growth. He noted that airports are costly to operate due to significant fixed expenses related to essential infrastructure like runways, taxiways, and terminals.

ACI represents 133 airport operators managing 624 airports in 47 countries, including Indian operators and the Airports Authority of India (AAI). IATA Director General Willie Walsh recently voiced concerns about increasing airport charges, including in India, and urged careful management to avoid escalating costs.

In India, the Airports Economic Regulatory Authority (AERA) approves tariffs for major airports. While some charges have increased, Baronci stated that the rise in airfares is not directly linked to higher airport charges. He pointed out that airport charges contribute only 5.1 percent to the total airfare and ancillary fees.

ACI’s forecasts predict that air traffic in the Asia Pacific region will grow from 3 billion to 8 billion passengers by 2042. The region is expected to lead in aviation market growth, with India being a key player.

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