+
Airfare hike not tied to increased airport charges; ACI
AVIATION & AIRPORTS

Airfare hike not tied to increased airport charges; ACI

The Airports Council International (ACI) stated that rising airfares are not linked to increased airport charges. Airport charges are crucial for infrastructure development within the commercial aviation ecosystem, but they remain a minimal part of the overall airfare. Stefano Baronci, Director General of ACI Asia Pacific & Middle East, emphasized that airports are infrastructure-intensive businesses, with costs dominated by maintaining essential infrastructure such as runways, taxiways, aprons, and terminal buildings. He noted that neglecting the capital expenditure needed to support future growth could lead to serious socio-economic consequences.

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)

The Airports Council International (ACI) stated that rising airfares are not linked to increased airport charges. Airport charges are crucial for infrastructure development within the commercial aviation ecosystem, but they remain a minimal part of the overall airfare. Stefano Baronci, Director General of ACI Asia Pacific & Middle East, emphasized that airports are infrastructure-intensive businesses, with costs dominated by maintaining essential infrastructure such as runways, taxiways, aprons, and terminal buildings. He noted that neglecting the capital expenditure needed to support future growth could lead to serious socio-economic consequences. 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)

Related Stories

Gold Stories

Next Story
Infrastructure Urban

KONE Opens India's First Digital Experience Centre in Pune

KONE, a global elevator and escalator manufacturer, has inaugurated its first Digital Experience Centre (DEC) in India, located in Pune. The facility aims to showcase how artificial intelligence (AI), connectivity and data-driven technologies can enhance customer experiences and improve building operations.The centre was inaugurated by Jussi Herlin, Executive Vice Chair, KONE Corporation; Philippe Delorme, President and CEO, KONE; and Nandan Nilekani, Co-founder and Chairman of the Board, Infosys.Designed as an interactive customer environment, the facility demonstrates digital solutions cover..

Next Story
Infrastructure Urban

CII GreenCo Launches Circularity Guidelines for Indian Industry

The Confederation of Indian Industry (CII) GreenCo Council has launched the CII GreenCo Circularity Guidelines – Pilot Version at the 17th CII GreenCo Waste & Resource Management Summit 2026 in Chennai. The initiative aims to strengthen resource efficiency, waste reduction and circular economy practices across Indian manufacturing and process industries.The guidelines introduce a structured framework with circularity indices covering raw materials, consumables, packaging and other resource inputs. These indicators will help industries assess existing practices, identify opportunities to ..

Next Story
Infrastructure Energy

Global Electronics Association Launches IPC-1783-CO2E Standard

The Global Electronics Association has introduced IPC-1783-CO2E, a new international standard aimed at improving consistency, transparency and comparability in product carbon footprint reporting across the electronics manufacturing industry.The standard, titled International Standard for Data Collection and Reporting of CO2 Equivalent (CO2e) Emissions for the Electronics Manufacturing Supply Chain, provides industry-specific guidance for collecting, estimating and reporting carbon emissions data.With increasing regulatory requirements and customer expectations, electronics manufacturers face c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code