Airfares to rise due to higher peak-hour charges

The civil aviation ministry dealt a body blow to low-cost carriers with its decision to double landing charges during peak hours (7am to 10am and 6pm to 10pm) at Delhi, Mumbai and Bangalore domestic airports. Aimed at easing congestion, the new charges would come into effect from the last week of March. The three airports account for nearly half of all domestic traffic. Civil aviation secretary Ashok Chawla has called a meeting of airlines on March 19 to apprise them of the decision. Landing fees are currently charged according to the weight of the aircraft. The landing charge for an Airbus A320 aircraft is Rs 32,000. Airlines are, however, charged additional fees if they fail to take off within two hours of landing. Chawla said the exact charges had not been decided upon but would be in place before the summer schedule for the industry begins in the last week of March.

Domestic carriers said they would pass the price hike on to consumers. The move will hit low-cost carriers the hardest since the hike will impact their fares the most. “If we do fly during peak hours, the additional cost will of course go to the passenger. All airlines will take up the issue with the ministry,” SpiceJet chairman Siddhanta Sharma said. Calling the new charges unfortunate, Air Deccan COO Warrick Brady added, “We already have enough cost today. Additional costs will have to pass on to the customers.” Sources close to Kingfisher Airlines said there would be no option but to increase fares if differential pricing comes into effect.

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