- 10:42 PM Are stricter rules for MF advertisements on anvil?
- 10:31 PM NSE to launch new MF service system on Nov 30
- 10:16 PM India indispensable to America's future: Barack Ob...
- 10:00 PM Subir Gokarn’s agenda:Stimulus exit not to hit eco...
- 09:16 PM Worst over for India auto companies: Anand Mahindr...
- 08:52 PM Edelweiss, Tokio Marine ink insurance JV
- 08:42 PM Aviation biz to contribute 5% to rev in 3-5 years:...
- 08:24 PM Inflow of money will not help curb inflation: Bima...
- 07:17 PM MphasiS Q4 cons net profit up 33.9% at Rs 245 cr
- 06:59 PM Immediate supports for rupee at 46.20/46.10: Commt...



The proposed doubling of airport charges during peak hours will mean passengers pay more. But CNBC-TV18 reports that they won't necesarrily be treated to uncongested airports.
Now, your airfare may soon become as complicated as your mobile telephone bill. Besides taxes, fuel surcharge and congestion cess, another charge could emerge after the higher airport charges that the government has proposed. The charge seems to be a way to disincentivise airlines from flying during peak hours.
But industry observers say this only means customers will pay more and airport authorities will earn more. Airlines will get nothing and it will not help in decongestion.The proposal also suggests cutting by half airport charges during non-peak hours. But airlines are unlikely to pass on the benefit to consumers.
Out of 650 flights that Mumbai and Delhi airports operate every day, over 60% fly during peak hours. That means 60 million people fly between 7am and 10am and between 6pm and 9pm. If the charge is levied, it will increase airlines' operational costs by 2-3%. That means a Rs 150-200 increase on peak-time fares.
At the moment, passengers pay almost Rs 1,225 in fixed levies and this will add 10% to them. It's unlikely to reduce your waiting time on the tarmac, but sure to make a wider hole in your pocket.
Industry experts say if the government really wants to cut congestion, it should place a moratorium on flying during peak hours. They also say that when the new runway in Mumbai is commissioned and the new Bangalore airport goes operational next year, delays will be minimised. So there seems to be liitle logic in levying such charges especially when airlines are trying to develop the market to stay afloat.
|
|
Business
Business News | Economy | Earnings | BSE NSE Notices
General News
Current Affairs | Politics | World News | Sports | Entertainment
Corporate Strategy
Management | Advertising | Marketing | Legal
Personal Finance
Tax | Insurance | Credit Cards | Loans | Property | Retirement | Investment Help | Financial Planning | Fixed Income
Markets
Local Market | Global Market | Market Cues | Analysis | Expert & FII outlook | Brokerage Recomendation
Stocks
Stocks in News | Expert Advice | ADRs & GDRs | IPO
Mutual Funds
News | Advice | MF Analysis | Fund Managers Views
Lifestyle
Travel | Wellness | Technology | Auto| Books
-
Most Read
-
Most Viewed
- 10 Companies that FIIs love
- 10 companies that MF managers love
- Mitesh Thacker's top 5 picks for trade today

- Ganeshaspeaks: Market prediction for Nov 24
- Will ITC dream run continue beyond FY10?

- Den Networks slips 22% after listing at Rs 195
- Trading in MF units to start in 15 days: SEBI

- Why LyondellBasell is a goldmine for RIL

- Experts see mkts at new highs, advise sectors

- Corrections in '10 to be more aggressive, violent: JPMorgan

- Mahindra may increase car prices due to rising input costs
Source: Business Line
- Renault to continue with M&M for Logan, says Ghosn
Source: Business Line
- Market volatility poses valuation problems: IRDA
Source: Business Line
- Punjab, Haryana buck all-India rice decline trend
Source: Business Line










