Airfare hike not tied to increased airport charges; ACI
ACI, which includes 133 airport operators managing 624 airports across 47 countries—including India and the Airports Authority of India (AAI)—responded to concerns raised by the International Air Transportation Association (IATA) over increasing airport charges. IATA recently cautioned countries, including India, to be mindful of rising charges. Despite significant investments in India's airport infrastructure, IATA's Director General, Willie Walsh, expressed worries about the rising costs, as tariffs for major airports are regulated by the Airports Economic Regulatory Authority (AERA) and have recently increased at some airports.
However, Baronci argued that the impact of airport charges on consumers is negligible, comprising only about 5.1% of the base airfare and ancillary fees. ACI projects that air traffic in the Asia-Pacific region will surge to 8 billion by 2042, up from 3 billion currently. India, one of the world's fastest-growing aviation markets with 157 operational airports, is anticipated to be the second fastest-growing market in the region.
(ET)