In the beginning of the year, the government passed an order discontinuing the fuel throughput charge at airports. This is a charge that was levied by airport operators per litre of jet fuel and borne by airlines. The move has been much appreciated by aviation industry stakeholders because it impacts margins for airlines. Cleverly worded, the order, after discontinuing the charges, states, “AERA/Ministry of Civil Aviation… should take into account the amount in this revenue stream and duly compensate the Airport Operator/AAI by suitably recalibrating other tariffs …” Put simply, the airport operators will be allowed to recoup the loss of revenue via updated charges. In the end, it is the passenger that will pay.
