Coronavirus impact: Airport operators seek moratorium on concession fees as airlines cut down operations

With as many as 580 flights cancelled due to the outbreak of coronavirus, the Association of Private A irport Operators (APAO) has asked for a moratorium on payment of concession fees to the regulator. .

In a letter written on March 11, APAO highlighted the troubles being faced by the aviation industry, which is impacting the airports industry.

“This letter was written two days ago as an initial representation to draw government attention. Our main issue was that our cash flow will get adversely affected,” Satyan Nayar, Secretary General, APAO, said speaking to BusinessLine.

585 international flights cancelled 

Nearly 585 international flights have been cancelled to and from India between February 1 and March 6 because of the outbreak of coronavirus. As many as 16 international airlines have cancelled 492 flights and four private Indian airlines have cancelled 93 flights during this period.


“If both domestic and international passengers coming to India will reduce, our aeronautical and non-aeronautical revenues. Duty free shops, F&b outlets, ground handling agents, aviation food service providers have already started demanding relief on their payment to the airports. This will have a cascading effect. Hence we want a moratorium on concessionaire fees,” Nayar explained.

APAO has written this letter to the Secretary of Ministry of Civil Aviation (MOCA) wherein it has also proposed levying of a nominal passenger facilitation charge as part of airline fares.

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