Flights to small cities and towns in India likely to become more expensive

Flights to and from smaller cities and towns are likely to cost more as the Centre has proposed a 30 percent hike in charges for small airports. The final decision on the same is awaited as the stakeholders might submit suggestions by Tuesday.

The Ministry of Civil Aviation has released a draft concept paper on the the determination of aeronautical tariffs for airport services at non-major airports. It has proposed a hike in landing and parking fees for aircraft by 30 percent and increasing user development fees by four times.

If approved, the new rates would be applicable for airports catering to less than 3.5 million passengers. The hike in fees is also applicable for airports that cater to UDAN flights. The Ude Desh Ka Aam Nagrik (UDAN) scheme basically aims at regional connectivity.

In the paper, the ministry said that the Airports Authority of India (AAI) was the major airport operator in the country, but today there are many other facilities that are being developed and operated by private players and states and that the monopoly of a service provider at a local level still exists. The AAI has said that in absence of revision of charges, smaller airports may suffer Rs 4,000 crore losses in five years.

According to the draft concept paper,  the airports would be divided in three categories:

Cluster 1: 13 airports that handle 1 million and more passengers a year

Cluster 2: 32 airports that handle 0.1 to 1 million passengers a year

Cluster 3: 32 airports that handle less than 0.1 million passengers a year

The decision on the proposal is yet to be finalised. The stakeholders have been told to submit their suggestions regarding the same by February 28.