Infrastructure Costs: The Real Driver Behind Rising Airport Charges

Airport charges are essential for infrastructure development in the commercial aviation sector. Despite concerns from the International Air Transportation Association (IATA) about rising costs, the Airports Council International (ACI) asserts that these charges are crucial and not directly tied to increased airfares. The Asia Pacific region is witnessing rapid growth in air traffic, particularly in India.

Airport charges are crucial to the commercial aviation ecosystem, playing a vital role in infrastructure development. According to the Airports Council International (ACI), there is no direct link between rising airfares and these charges.

In response to concerns raised by the International Air Transportation Association (IATA) about increasing airport charges, ACI emphasized that charges will continue to be a significant revenue source for airports. 'Failing to address capital expenditure requirements for infrastructure could have serious socio-economic consequences,' stated Stefano Baronci, Director General, ACI Asia Pacific & Middle East.

India, identified as one of the fastest-growing civil aviation markets, has made notable investments in its infrastructure. However, concerns about rising airport charges persist. The Airports Economic Regulatory Authority (AERA) recently approved tariff hikes at several major Indian airports. Despite these rises, ACI maintains that the impact on consumer airfare is minimal.

(With inputs from agencies.)