The Airport Council International (ACI), which represents 113 airport operators managing 602 airports in 49 countries of the Asia-Pacific and West Asia, has asked the Civil Aviation Ministry to reduce airport taxes on a per passenger basis. It has also asked the Ministry to consider waiving, on a case-by-case basis, the concession fees that the private airport operator has to pay

In a letter to Civil Aviation Minister Hardeep Singh Puri, the ACI said the Asia-Pacific has been impacted the most by the Covid-19 outbreak, with 2020 first-quarter passenger traffic volumes 24 per cent below forecast.

Within the Asia-Pacific region, mainland China, Korea and Hong Kong remain the most hit, with sizeable losses in traffic volumes. The decrease in traffic in these countries/ territories has been well above the regional average drop, peaking in February even beyond 50 per cent at some hubs. “Preliminary estimations are providing an increasingly challenging scenario in terms of passenger traffic in March,” the letter said.

It pointed out that the aeronautical revenues from airport charges paid by airlines and passengers against the use of airport facilities and services are key to recovering operating expenses — critical to ensure airport operations and service quality — and the large capital costs incurred by airports. But aeronautical revenues alone do not recover the cost base for airport facilities and services. Commercial revenues play a key role in bridging the gap between airport costs and aeronautical revenues, the letter said.

Serious threats

Both these revenue streams are under serious threat. “The shortfall in the number of passengers and the cancellation of flights leads to reduced revenues from airport charges (landing charge and parking charges paid by airlines for instance, and passenger service charges and security charges paid by passengers).

“Non-aeronautical revenues, which usually serve as an additional cushion during economic downturns, are not able to play that role in the Covid-19 outbreak context. In addition, we recommend a more pondered approach with respect to the airlines’ proposal to waive the 80/20 rule for the current Winter Season and the forthcoming Summer Season,” the letter added.

The ACI said while it is important to be sympathetic with the airlines’ needs to avoid flying empty aeroplanes simply to retain airport slots, for economic and environmental reasons, this should not jeopardise the connectivity of passengers and distort the competitive field.

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