Airfares set to climb as govt plans to hike passenger service fee: Report

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Airfares set to climb as govt plans to hike passenger service fee: Report

The government will raise the passenger service fee (PSF) up from Rs 135 to Rs 170 to cover security costs.

The Central Industrial Security Force (CISF), which oversees the security of airports in India, is yet to receive close to Rs 800 crore worth of dues from the Delhi Airport, as per a report by  The Economic Times.

The report quoted an aviation ministry official saying that the rise in PSF would ensure that the airports could meet their security costs for the next three years. The official also spoke of a system in place to raise the PSF every three years to meet the securing costs of airports.

PSF rates have remained unchanged since 2001, and following the CISF’s statement to curtail its services if the dues aren’t paid, the home secretary wrote to the aviation ministry on the matter.

The paper also said that the Prime Minister’s Office (PMO) has asked the finance ministry to weigh in on the matter.

The officials state that it takes close to Rs 1,300 crore to cover the CISF’s security dues and that Rs 500 crore worth of PSF have not been collected.

The state-owned Airports Authority of India tries to bridge this deficit by paying Rs 150 crore from its own funds.

Images are for reference only.Images gathered automatic from google.All rights on the images are with their original owners.

2018-12-29 13:33:16

Images are for reference only.Images gathered automatic from google.All rights on the images are with their original owners.

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