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Airfares To Increase As Govt Plans Hike In Passenger Service Fee : Report


To meet the security costs of airports, the government will increase passenger service fee (PSF) from Rs 135 to Rs 170. Notably, since the year 2001, this component of the airfare i.e. PSF has remained unchanged.

Airfares To Increase As Govt Plans Hike In Passenger Service Fee : Report

CISF or the Central Industrial Security Force, the agency that oversees security of airports in India, is yet to receive dues worth Rs. 800 crore from the Delhi Airport. In the report, an official from the aviation ministry is quoted as saying that the increase in PSF will enable airports in the country to meet their security costs for the next 3 years. Also there has been a proposal to increase PSF every three years in order to cover the cost of security at airports.

On the statement made by the CISF that it will cut on its services at airport if the dues are left unpaid, the home secretary wrote to the aviation ministry. As per the official data, a total of Rs. 1,300 crore are required to meet the security dues of the CISF and also PSF charges totaling to Rs. 500 crore are left uncollected. And a portion of this amount is covered by the state-owned Airports Authority of India (AAI) that pays Rs. 150 crore from its funds.

Read more about: airfares aviation airport
Story first published: Wednesday, December 26, 2018, 15:01 [IST]
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