MINI

ASSIGNMENT-1
AIRPORT
CHARGES
AMAL SAJU(18MBAR9004)
AVIATON FINANCE MANAGEMENT
MBA AVIATION- CMS BUSINESS SCHOOL
SUBMISSION DATE : 10/01/2020
 CHARGES FOR AIRPORT FACILITIES –
TYPES AND BASIS FOR BILLING
Landing charges

– The following principles should be taken into account when landing charges are
established:
– Landing charges should be based on the aircraft weight formula. The maximum
certificated take-off weight as indicated in the certificate of airworthiness (or other
prescribed document) should be used, while considering local restrictions that may affect
aircraft maximum take-off weight.
– Where charges for approach and aerodrome control are levied as part of the landing charge
or separately, they should be consistent with policies on charges for air navigation services
– Stage length flown should not be a factor in determining landing charges.
Emissions-related aircraft charges to address local air quality (LAQ) problems at or
around airports

In the event that LAQ emissions related charges are to be levied, the following principles should be applied:
i) LAQ emissions-related charges should be levied only at airports with a defined LAQ problem, either
existing or projected, and should be designed to recover no more than the costs of measures applied
to the mitigation or prevention of the damage caused by the aircraft.
ii) The cost basis for charges should be established in a transparent manner, and the share directly
attributable to aircraft should be properly assessed.
iii) consultations with stakeholders should take place before any such charges are imposed on users.
iv) LAQ emissions-related charges should be designed to address the LAQ problem in a cost-effective
way.
v) LAQ emissions-related charges should be designed to recover the costs of addressing the LAQ
problem at airports from the users in a fair and equitable manner, should be non-discriminatory
between users, and not be established at such levels as to be prohibitively high for the operation of
certain aircraft.
Security charges
• States are responsible for ensuring the implementation of adequate security measures at airports
pursuant to the provisions of annex 17 — security to the convention on international civil
aviation.
• They may delegate the task of providing individual security functions to such agencies as airport
entities, aircraft operators and local police.
• It is up to states to determine in which circumstances and the extent to which the costs involved
in providing security facilities and services should be borne by the state, the airport entities or
other responsible agencies.

Parking and hangar charges

The following principles should be applied in establishing parking and hangar charges:
i) For the determination of charges associated with use of parking, hangar and long-term storage of
aircraft, maximum permissible take-off weight and/or aircraft dimensions (area occupied) and length
of stay should be used so far as possible as the basis.
ii) Any period of free parking time for aircraft immediately following landing should be determined
locally by considering aircraft scheduling, space availability and other pertinent factors.
Noise-related charges

In the event that noise-related charges are to be levied, consultations should take place
on any items of expenditure to be recovered from users and the following principles
should be applied:

i) noise-related charges should be levied only at airports experiencing noise problems

and should be designed to recover no more than the costs applied to their alleviation
or prevention.

ii) any noise-related charges should be associated with the landing fee, possibly by
means of surcharges or rebates, and should take into account the noise certification
provisions of annex 16 — environmental protection to the convention on international
civil aviation in respect of aircraft noise levels.

iii) noise-related charges should be non-discriminatory between users and not be

established at such levels as to be prohibitively high for the operation of certain
aircraft.
IATA (INTERNATIONAL AIR
TRANSPORTATION
ASSOCIATION)
– IATA was formed in April 1945 in Havana, Cuba. It is the successor to the
International Air Traffic Association, which was formed in 1919 at The Hague,
Netherlands

– Role of IATA
– To co-operate with other international air transportation organizations Essentially,
IATA is airlines working together to standardize and improve service internationally
Due to the vital role played by IATA in air transportation issues, it is recommended
that you ensure that your carrier/forwarder is an IATA agent.
– To promote safe, regular and economic air transport
– To foster air commerce
– To study problems connected with airline industry
AERA (AIRPORTS ECONOMIC
REGULATORY AUTHORITY OF
INDIA)
– The Airports Economic Regulatory Authority (AERA) is a statutory body
constituted under the Airports Economic Regulatory Authority of India Act,
2008 (27 of 2008) notified vide Gazette Notification dated 5th December 2008.
The AERA was established by the Government vide its notification no GSR 317
(E) dated 12.05.09 with its head office at Delhi.
– The statutory functions of the AERA as enshrined in the Airports Economic
Regulatory Authority of India Act, 2008 are as below:
– To determine the tariff for the aeronautical services taking into consideration:
The capital expenditure incurred and timely investment in improvement of
airport facilities.
– The service provided, its quality and other relevant factors.
– The cost for improving efficiency.
– Economic and viable operation of major airports.
• TO DETERMINE THE AMOUNT OF DEVELOPMENT FEES IN RESPECT OF MAJOR
AIRPORTS

• TO DETERMINE THE PASSENGERS SERVICE FEE LEVIED UNDER RULE 88 OF THE

AIRCRAFT RULES, 1937 MADE UNDER THE AIRCRAFT ACT, 1934.

• TO MONITOR THE SET PERFORMANCE STANDARDS RELATING TO QUALITY,

CONTINUITY AND RELAIBILITY OF SERVICE AS MAY BE SPECIFIED BY THE CENTRAL
GOVERNMENT OR ANY AUTHORITY AUTHORIZED BY IT IN THIS BEHALF

• TO CALL FOR SUCH INFORMATION AAS MAY BE NECESSARY TO DETERMINE THE

TARIFF UNDER CLAUSE
BIBLIOGRAPHY

– http://aera.gov.in/content/report.php
– https://www.iata.org/en/youandiata/travelers/iata-role/
– https://www.icao.int/publications/Documents/9082_9ed_en.pdf