Increase in airfare not linked to rise in airport charges, says ACI

Airport charges are an important element of the commercial aviation ecosystem for infrastructure development and increase in airfares is not linked to a rise in the charges, according to the Airports Council International (ACI).

Against the backdrop of the International Air Transportation Association (IATA) flagging concerns over a steep rise in airport charges, ACI also said that the charges will remain a critical source of revenue for airports.

"Airport charges are an important element of the commercial aviation ecosystem for infrastructure development. Failing to address the capital expenditure requirements to accommodate the projected growth could have serious socio-economic consequences," Stefano Baronci, Director General, ACI Asia Pacific & Middle East, said.

In a statement to PTI, he noted that airports are highly infrastructure-intensive businesses, with their cost structures dominated by significant fixed costs for the operation and upkeep of essential infrastructure such