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AERA likely to hike tariffs for 17 airports
May 09, 2017
- The Airport Economic Regulatory Authority (AERA) is going to revise the tariffs of 17 major airports and chances are that they would be increased.
- The new charges are likely to come into effect during the current fiscal and would help in shoring up the revenues of Airport Authority of India (AAI). AERA has recommended lower airport charges for Delhi International Airport (DIAL), but the matter is currently sub-judice with the latter challenging it.
- Almost 30% of the total revenue of AAI comes from its revenue-sharing agreement with DIAL and Mumbai International Airport (MIAL).
- In DIAL, the AAI receives 45% of the total revenue while in MIAL it is at 38%. If charges get lowered eventually in these two airports, the revenue of AAI would also decline.
