The government proposes a new policy for greenfield airports which it feels will bring down the cost of air travel in the country.

According to the new proposal, the maximum blended aeronautical yield in rupee per passenger terms will be predetermined by the Concession Authority at the beginning of the concession period.

“Currently, the entire aeronautic charges are based on capital expenditure. In the years when capital expenditure is incurred the per passenger charges shoot up to as much as ₹800. Once thecharges (money spent by the airport operator to build the airport) are recovered, these charges can come down to ₹100. Instead of that we giving something like an equalised tariff and we are saying that it will be ₹400. If you look at the top five airports over the last eight years it is between ₹410 and ₹470. Average is ₹440 and we have got it down to ₹400,” RN Choubey, Secretary, Civil Aviation, said at a press conference.

The new guidelines will be in the public domain till September 14 for suggestions after which the government will review the suggestions and come up with the new guidelines.

Choubey said since the concession period is for 40 years and industry could witness shocks, the concessionarie can avail of deferral of concession fee for a maximum of five years within the 40 years’ concession. However, the amount has to be repaid once the business picks up.

Airport operators will be allowed to utilise 10 per cent of the airport area.

comment COMMENT NOW