New Delhi, September 19, 2024: A rise in the airfares is not linked to the increase in the airport charge which is a crucial part of the commercial aviation ecosystem for infrastructure development, the Airports Council International (ACI) said today.
Amid concerns raised by the International Air Transportation Association (IATA) regarding the sharp increase in airport charges, Airports Council International (ACI) that these charges will continue to be a vital source of revenue for airports.
“Airport charges are an important element of the commercial aviation ecosystem for infrastructure development. Failing to address the capital expenditure requirements to accommodate the projected growth could have serious socio-economic consequences,” Stefano Baronci, Director General, ACI Asia Pacific & Middle East, said.
Airports are infrastructure-intensive businesses
Baronci told PTI that airports are highly infrastructure-intensive businesses, with their cost structures primarily driven by substantial fixed expenses required to operate and maintain critical infrastructure like runways, taxiways, aprons, parking stands, and terminal buildings.
A total of 133 airport operators managing 624 airports across 47 countries and territories are members of Airports Council International (ACI) in the Asia-Pacific and Middle East regions. Indian airport operators, including the Airports Authority of India (AAI), are also part of this association according to the reports published in financialexpress.com.
Earlier this month, IATA Director General Willie Walsh expressed concerns over airport charges in several countries, adding that nations should be careful around it.
“India needs to be congratulated for the investment in infrastructure in recent years which will pay dividends but only if costs are controlled. At the moment, we continue to be concerned around the very significant increase in airport charges in India…,” he had said.
Meanwhile, ACI’s Baronci clarified that the rise in airfares is not connected to the increase in airport charges.
“The impact of airport charges on consumers (passengers) is very small to negligible. The full basket of airport charges collectively represents only 5.1 per cent of the base airfare and ancillary fees,” he added.
