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COVID-19: IATA, APAO lock horns over proposed levy on air tickets

By IANS | Updated: March 13, 2020 18:25 IST

The lobby groups representing domestic private airport operators and global airlines have come face to face over the former's suggestion to levy a fee on air tickets to cover expenses made to contain the spread of coronavirus from international passengers.

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New Delhi, March 13 The lobby groups representing domestic private airport operators and global airlines have come face to face over the former's suggestion to levy a fee on air tickets to cover expenses made to contain the spread of coronavirus from international passengers.

Amitabh Khosla, Country Director, International Air Transport Association (IATA), said India's private airports need to do a reality check on their suggestion to impose a new levy at a time when passenger demand is plummeting on account of the COVID-19 outbreak.

"What is needed now are relief measures to help the aviation industry, and eventually when the situation is resolved to look at ways to grow demand, instead of a self-serving interest in protecting profits without recognizing what is happening in the world around us," he said in a statement.

Facing pressure on their cash flows in the wake of flight cancellations by airlines, private airport operators under the banner of the Association of Private Airports Operators (APAO) this week suggested that the government allow levying a fee on flight tickets for recovering the money spent on deploying resources to beef up measures for screening air travellers for coronavirus symptoms.

They also pitched for putting a moratorium on the revenue share by Delhi and Mumbai airport operators with state-owned Airports Authority of India (AAI) for at least three months to tide over the crisis.

The airports body representing seven private operators has in a letter to Civil Aviation Secretary PS Kharola said that both aeronautical and non-aeronautical revenues have been affected due to flight cancellations by domestic and international airlines in the past few weeks.

Further, many of their concessionaires such as food and beverage (F&B) service providers could default in the event of the crisis continuing.

"Reduced passengers at airports have adversely impacted the non-aero revenues due to less sales at F&B and retail outlets. Non-aero concessionaires have already started asking for reduced revenue share or MMG which in turn will impact airport operators' revenues," the APAO said in its communication to the Civil Aviation Ministry.

The APAO said that ensuring compliance with government advisories on screening of passengers has required airports to significantly beef up manpower deployment as well as spend money on various items like masks, sanitizers and floor cleaners.

( With inputs from IANS )

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