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Mumbai Flyers to Pay Development Fee for Another Year amid Covid Hit to Air Travel

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Mumbai Flyers to Pay Development Fee for Another Year amid Covid Hit to Air Travel

Passengers wearing protective face masks wait in a queue to enter Chhatrapati Shivaji International Airport in Mumbai. (Representational image: Reuters)

Passengers wearing protective face masks wait in a queue to enter Chhatrapati Shivaji International Airport in Mumbai. (Representational image: Reuters)

In view of the revenue hit due to the covid-19 pandemic, the AERA in an order last week said the Mumbai airport authority requested an extension due to shortfall in the collection of both the levies.

The development fee charges for outbound flights from Mumbai — Rs 120 for domestic and Rs 720 for international destinations — will continue till March 31, 2022, according to reports.

The tariff order that was expected to end on March has been extended by a year due to covid-19 hit travel restrictions, according to a Times of India report. The decision will be reviewed in December.

The Airports Economic Regulatory Authority (AERA) had allowed Mumbai International Airport Ltd (MIAL) to levy a fee of Rs 100 and Rs 600 on each outgoing domestic and international passengers in 2012 in a bid to cover the airport project’s deficit financing of Rs 3,845 crore. The order was revised in 2016 and an extra Rs 20 for domestic passengers and Rs 120 for international flyers was imposed till March 31, 2021, to help fund Rs 518 crore to finance the metro works in the city.

In view of the revenue hit due to the covid-19 pandemic, the AERA in an order last week said the Mumbai airport authority requested an extension due to shortfall in the collection of both the levies. The Airports Authority of India (AAI) confirmed that as on March 31, 2020, Rs 524.6 crore are yet to be collected under project DF, and, a deficit of Rs 102.7 crore is to be collected under metro DF.

Noting that the number of domestic and international fell by 76.4 per cent and 91.9 per cent between April 2020 and January 2021, the order said the deficit will unable to be met by March 31.