AERA allows new airports to adopt hybrid model for tariffs

• Posted in Aviation
• on January 27, 2017
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Regulator AERA has allowed upcoming airports to follow a hybrid model for determining tariffs that may lead to fliers shelling out more as airlines may pass on the additional burden to them.
Under the ‘Hybrid Till’ model only up to 30 per cent of the non-aeronautical revenues, which include segments like retail, food & beverages and parking, would be used for cross-subsidisation of aeronautical charges.
Aeronautical charges include those related to route and terminal navigation services.
Currently, most of the airports follow ‘Single Till’ model whereby non-aeronautical revenues are completely used to cross subsidise aeronautical charges.
With the new model, only up to 30 per cent of the non- aeronautical revenues would be used for cross subsidisation.
Such a tariff mechanism could push the expenses higher for fliers as airport operators might hike the user development charges.
The new national civil aviation policy, unveiled in June last year, had recommended ‘Hybrid Till’ model.
In a six-page order, dated January 23, AERA (Airports Economic Regulatory Authority) said that in the future tariffs at major airports would be determined under “Hybrid Till wherein 30 per cent of non-aeronautical revenues will be used to cross-subsidise aeronautical charges”. A.J. Derby Womens Jersey

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