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Ahmedabad airport’s plan to hike fees has airlines fuming

by TLAteam October 16, 2023October 16, 2023
written by TLAteam October 16, 2023October 16, 2023
Ahmedabad airport’s plan to hike fees has airlines fuming

Adani Group-owned Ahmedabad airport’s proposal to increase user charges for charter flights during the ongoing ICC Cricket World Cup has sparked a backlash from major airlines, prompting them to seek government intervention.

Business News

The airport has raised ground handling charges by more than tenfold.
The airlines have asserted that this sudden hike is illegal and will render charter operations unaffordable.
On Friday evening, the Airport Economic Regulatory Authority (AERA) issued a notice stating that levying charges and tariffs not authorised by the authority is illegal. In the notice, AERA pointed out that some airport operators were imposing charges without seeking permission, resorting to unethical conduct. All airport operators have been instructed to refrain from imposing charges that the authority has not approved.

AERA has also summoned the top management of Ahmedabad airport to discuss the issue, scheduled for Monday.

The tariff list issued by Ahmedabad airport in September reveals that the airport demanded a minimum of Rs 265,000 as general aviation charges for any charter flight carrying more than 15 passengers. Additionally, it imposed a charge of Rs 17,667 per passenger beyond that threshold. The airport also imposed supplementary charges on special flights operated during the Indian Premier League, including Rs 6,000 per passenger.

These charges are in addition to the landing and parking fees. Any flight that has not been registered with the airport operator for a specific season will be categorised as a charter, as per information provided to the airlines.

Sources have disclosed to airlines such as IndiGo, SpiceJet, and Vistara had bid based on previous charges for a Board of Control for Cricket in India (BCCI) tender to ferry cricket teams during the tournament. The unexpected surge in airport charges makes these flights financially unviable, and the cricket body has refused to pay the extra charges. In response, airlines are operating special charter flights to accommodate cricket fans from around the world.

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