Civil Aviation Ministry to levy future tariffs at all airports on 'hybrid-till' basis
In an attempt to bring in uniformity and level playing field across various airport operators, the Civil Aviation Ministry on Tuesday said that future tariffs at all airports will be calculated on a 'hybrid-till' basis.
"As per the National Civil Aviation Policy, 2016, to ensure uniformity and level playing field across various airport operators, future tariffs at all airports will be calculated on a 'hybrid till' basis, unless otherwise specified for any project being bid out in future," the Civil Aviation Ministry said in a statement on Tuesday.
The 'hybrid-till' model is used to ascertain aeronautical charges at airports. The model permits airport operator to include a portion of its income generated through non-aeronautical side of activities with those of aeronautical ones to calculate the total earnings, IANS had reported in June 21.
The 'hybrid-till' model can make air travel more expensive.
The operator generates revenue by charging aeronautical activities such as parking, housing and landing (PHL). It also earns revenue from non-aeronautical streams like duty free shops, food and beverages (F&B) outlets, vehicle parking and advertisements, the news agency had said.
"It is also provided that 30% of non-aeronautical revenue will be used to cross-subsidise aeronautical charges," cited the Ministry of Civil Aviation statement quoting Minister of State for Civil Aviation Jayant Sinha as stating in his written reply to the Rajya Sabha on Tuesday.