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Passenger Service Fee Collection



Passenger Service Fee Collection 
         Passenger Service Fee (PSF) is charged as part of passenger fare of air travel. It is collected under two heads (i) PSF- Security Component and (ii) Facilitation Component. As per the orders of Airports Economic Regulatory Authority, PSF (FC) has been discontinued at Major Airports and merged with UDF. The PSF(Security Component) is collected to meet theexpenditure on security services provided by CISF which is performing security services at airports in line with the guidelines issued by Bureau of Civil Aviation Security.

           Government of India has established Airports Economic Regulatory Authority of India (AERA) under an Act of Parliament in 2009 to inter-alia determine the amount of PSF levied under Rule 88 of Aircraft Rules, 1937 made under the Aircraft Act, 1934. Accordingly, AERA determines these charges for major airports after following a detailed stakeholder consultation considering operating cost of the airport operator.
           Airport Authority of India has collected Rs.260.94Crores, 208.57Cores, 200.53Crores and 375.08 Crores (Provisional) for the years 2012-13, 2013-14, 2014-15 and 2015-16 and Bangaluru International Airport Limited has also collected Rs.40.92Crores, 43.66Crores and 11.93Crores for the years 2012-13, 2013-14, 2014-15 towards PSF (Facilitation component).
The details in respect of Airports Authority of India are given below:

STATEMENT INDICATING EXPENDITURE INCURRED ON PASSENGER
      Rs. In Crores


2012-13
2013-14
2014-15
2015-16( uptoSep. 2015
prov)
731003000 R & M:-Civil TERMINAL & OTHER BLDGS IN Op AREA
41.89
32.21
47.29
17.82
731006000 R & MCivil OTHER BUILDINGS
4.24
6.67
6.05
3.62
731009000 R & M: CiVIL:GENERAL
30.97
26.85
39.79
68.01,
731101000 R & MElect A/C EQUIPMENT
14.31
18.02
17.62
8
731102000 R & MElect: POWER SUPPLY & GEN SETS
13.19
15.24
11.72
4.82
731103000 R & MElect. GROUND LIGHTING
3.87
5.31
5.98
5.89
731104000 R & M: ELEC. INSTALLATIONS
44.28
52.23
71.00
27.65
731105000 R & M: ELEC.:OTHERS
25.64
29.96
33.76
13.35
731301000 R & M: FURNITURE & FIXTURESOffice
50.22
54.15
14.19
1.19
722005000 Cons. Of Toiletry & Conservancy Stores
1.78
2.1
1.30
2.25
722006000 CONSUMPTION OF PAPER GLASS CONSUMPTION
1.45
1.65
0.51
0.25
722013000 Cons. Of Other Consumables
3.93
5.63
2.89
3.01
726001000 Electricity Expenses
238.5
322.97
346.96
174.95
726003000 Water Charges
245.4
250.68
10.38
24.74
760002000 Upkeep Expenses (MESS Exp.)
17.35
16.44
33.25
15.79
860403401 Depn. Building- Free-hold
385.14
492.5
552.11
225.2
860405401 Depn.-Plant & Equipment-Freehold/INSTALLATION
387.81
413.52
504.88
330.25
860406401 Depn.-Furniture & Fixtures-Freehold
5.55
6.1
13.96
6.2
TOTAL
1515.52
1752.28
1713.63
932.99

Statement showing PSF expenditure on security by AAI







(Rs. In Crores)





(Rs. In Crores)
Capital.
Rev

total


2012-13
41.3

556.59

597.89

2013-14
53.03

592.72

645.75

2014-15
90.9

665.41

756.31

2015-16( upto Sep. 2015 prey)
0

283.11

283.11


           The services being provided to passengers are Security, Baggage trolleys, comfortable cushion chairs, escalators, travelators, air conditioning in terminal, conveyor belt system for baggage, information signages, flight information display system, Wi-fi system, public address system, first aid medical facility, facilitation of differently abled & elderly passengers, lost & found facility, etc. No such services are put on hold.
                      
This information was given by Minister of State for Civil Aviation, Dr. Mahesh Sharma in a written reply to a question in Rajya Sabha today. 

***
Financial Performance of Air India Improves 

Air India has made substantial improvements in its financial performance. The main areas in which the company has registered improvements in FY 2014-15 in comparison to FY 2011-12 are as follows:

(i) The Operating Loss has consistently reduced since merger and in 2014-15, the same stands at Rs.2636.19 crores as compared to Rs.5138 crores in 2011- 12.

(ii) As per 2014-15, the Net Loss is Rs.5859.91 crores as against the loss of Rs.7559.74 crores in 2011-12 i.e. a reduction by 22.5%.

(iii) The Company has turned EBIDTA positive by Rs.337.77 crores in 2014- 15 as against the negative EBIDTA of Rs.2236.95 crores in 2011-12.

(iv) Total Revenue increased from Rs.14713.81 crores in 2011-12 to Rs.20606.27 crores in 2014-15 i.e. by Rs.5892.46 viz by 40.1% as compare to levels of 2011-12.

Earlier Air India (AI) had been suffering losses over the past few years and the details of the losses for the past 5 years are as follows:

Financial Year           Net Loss (Rs. Crores)
  2010-11                  6865.17
  2011-12                  7559.74
  2012-13                  5490.16
  2013-14                  6279.60
  2014-15                  5859.91

Losses were on account of a multitude of factors which include the following:

(i) High fuel prices
(ii) High interest burden
(iii) Increase in competition especially from low cost carriers
(iv) High Debt Equity Ratio
(v) High Airport User Charges
(vi) Liberalized bilaterals to foreign carriers
(vii)Adverse impact of exchange rate variation due to weakening of the Indian Rupee.


Government took cognizance of the deteriorating financial position of Air India and formulated a Turnaround Plan (TAP)/ Financial Restructuring Plan (FRP) with the aim of improving the operational and financial performance of the company which was approved by the Cabinet Committee on Economic Affairs (CCEA) in its meeting held on 12th April, 2012. The TAP/ FRP envisages the following:

(i) Upfront equity of Rs.6750 cores in FY 2011-12.
(ii) Equity for Cash deficit support of Rs.4,552 crores till FY 2017-18.
(iii)Equity for guaranteed aircraft loan fill FY 2021 of Rs.18,929 crores.
(iv) For GOI guaranteed Non-Convertible Debentures (NCDs) an amount of Rs.11,951 crores towards interest and Rs.7400 crores towards principal. Till date, equity of Rs.22,280 crores has been released to Air India under TAP/FRP.
The TAP/ FRP also provides that equity would be infused subject to achievement of certain laid down milestones. The Company has achieved most of the targets set out in the TAP milestones, and has made progress in both Operational as well as Financial Areas.

This information was given by Minister of State for Civil Aviation, Dr Mahesh Sharma in a   written reply to a question in the Rajya Sabha today.
*****  
Fine on Airlines for Acting like a Cartel 
The Competition Commission of India (CCI) has imposed penalties of Rs. 151.69 crores on Jet Airways, Rs. 63.74 crores on Indigo and Rs. 42.48 crores on SpiceJet for concerted action in fixing and revising Fuel Surcharge (FSC) for transporting cargo.

In order to protect the interest of passenger and bring transparency on charges for the facilities offered by airlines, DGCA has issued the following Civil Aviation Requirements (CARs) & Air Transport Circulars on Passenger Facilitation:

(i) CAR, Section -3, Series-M, Part-I on "Carriage by Air of Persons with Disability and/ or Persons with Reduced Mobility".

(ii) CAR, Section -3, Series-M, Part-II on "Refund of Airline tickets to passengers of public transport undertakings".

(iii) CAR, Section -3, Series-M, Part-IV on "Facilities to be provided to passengers by airlines due to denied boarding, cancellation of flights and delays in flights".

(iv) CAR, Section -3, Series-M, Part-V on "Facilitation in case of diversion".

(v) Air Transport Circular ATC Circular ATC 03 of 2015 on Unbundle of services and fees by scheduled airlines.

(vi) Air Transport Circular 02 of 2010 Publishing of Tariff - Rule 35 of Aircraft Rules, 1937.

The above regulations have been issued in consultation with the stakeholders, thereby ensuring the protection of their interests.

This information was given by Minister of State for Civil Aviation, Dr Mahesh Sharma in a written reply to a question in the Rajya Sabha, today. 
*****
Avoidance of delay in Modernisation and Upgradation of Airports and Helipads 
         
           Details of proposal received by the Government for modernization of airports and helipads are as follows:
      
S.No
Name of State
 Name of Airport
Development, Expansion, Up-gradation work
1.           
Andhra Pradesh
Tirupati
Construction of Integrated Terminal Building and Runway extension
2.           
Chhatisgarh
Raigarh
Acquisition of land for development of Airport.
3.           
Haryana
HissarKarnal
Feasibility study carried out for development of Airport.
4.           
Himachal Pradesh
Kullu
Reclamation of land by river diversion/ training for extension of runway


Shimla
Re-carpeting & widening of Runway
5.           
Jammu & Kashmir
Jammu (CE)
Extension of Runway and infrastructure development.


Leh
Construction of new Terminal Building.                               .
6.           
Jharkhand
Deoghar
Acquisition of land and development of Airport on Special Purpose Vehicle (SPV) Model.
7.           
Karnataka
Belgaum
Development of Airport including New Terminal Building, Extension and strengthening of runway, construction of taxiway, apron, isolation bay and other ancillary works.


Hubli
Development of Airport including New Terminal Building, Extension and Strengthening of runway, construction of taxiway, apron, Isolation bay and other ancillary works.
.
Orissa
Jharsuguda
Acquisition of land for development of Airport for phase I & II.
9.           
Punjab
Ludhiana
Acquisition of land for development of Airport.                           _
10.        
Rajasthan
Kishangarh
Development    of Airport    and     construction    of      Boundary                              wall             and
aerodrome pavement etc.


Jodhpur(CE)
Acquisition of land for development of Airport.
11.        
Tamilnadu
Coimbatore
Expansion and up-gradation of airport with two parallel runways for simultaneous operation of aircrafts.


Tuticorin
Acquisition of land for operation of A320 in phase-I and subsequently for B767 type of aircraft.
12.        
Tripura
Agartala
New Integrated Terminal Building, Apron,    Link Taxiway and other
associated works and Hangar for A-321 type of Aircraft


Kailashar
Development of the airport for ATR-72 type of aircraft.


Kamalpur
Development Kamalpur for ATR-72 aircraft.
13.        
Union Territory
Agatti
Acquisition of land for development of Agatti Airport.


Pudducherry
Work for extension of runway,    apron     &  New TerminalBuilding completed for operation of ATR-72 operation. Acquisition land for further development.
14.        
Uttar Pradesh
Gorakhpur (CE)
Development of Civil Enclave.


Kanpur (Chakeri)CE
Development of Civil Enclave.


Agra (CE)
Development of Civil Enclave:


Allahabad (CE)
Development of Civil Enclave.


Bareilly (CE)
Construction of new Civil Enclave.


Meerut
Acquisition of additional land for development of Airport.


Moradabad
Acquisition of additional land for development of Airport.


Faizabad
Acquisition of additional land for development of Airport.

         Airport Authority of India (AAI) has an effective monitoring mechanism to ensure project implementation, quality assurance, expenditure monitoring and regulatory mechanism to ensure budgetary compliance at all stages of project implementation, viz project planning, conception, execution and commissioning stages. All efforts are taken for timely completion of work to avoid cost escalation.

           Government regularly monitors the projects to ensure timely completion and fulfillment of budgetary obligations.

           This information was given by Minister of State for Civil Aviation, Dr. Mahesh Sharma in a written reply to a question in Rajya Sabha today. 

***

Seat Occupancy Ratio in Flights 
       As on date, 14 Scheduled Operators are functioning in the country.

           The financial summary of Scheduled Indian carriers for the Financial Year 2013-14 is given below:

FINANCIAL SUMMARY OF SCHEDULED INDIAN CARRIERS FOR THE FINACIAL YEAR 2013-14
(RS. IN MILLION)

2013-14
NAME OF THE AIRLINE
OPERATING REVENUE
OPERATING EXPENSES
OPERATING RESULT
NATIONAL CARRIERS
AIR INDIA
190,934.9
223,488.5
-32553.6
AIR INDIA EXPRESS
20,696.1
19,968.4
727.7
ALLIANCE AIR
2,423.9
4,178.2
-1754.3
TOTAL.
214,054.9
247,635.1
-33580.2
PRIVATE SCHEDULED DOMESTIC AIRLINES
JET AIRWAYS
172,325.1
201,072.5
-28747.5
JETLITE (P) LTD.
16,909.9
21,456.0
-4546,0
GO AIR
25,323.8
24,228.8
1097.0
SPICEJET
63,042.3
73,036.8
-9994.5
INDIGO
111,165.8
108,486,9
2698.9
AIR COSTA*
511.0
1,206.6
-695.5
TOTAL
388,767.0
428,259.0
-39492.0
GRAND TOTAL
602,821.9
675,894.1
-73072.2
" Air Costa started operating In October 2013.
SOURCE :- ICAO ATR FORM-EF FURNISHED BY SCHDEDULED INDIAN CARRIERS.
           The Passenger load Factor of Scheduled Indian carriers for the Financial Year 2013-14 is given below:

PASSENGER LOAD FACTOR OF SCHEDULED INDIAN CARRIERS FOR THE FINANCIAL YEAR 2014-15
NATIONAL SCHEDULED CARRIERS
NAME OF THE CARRIER
NATURE OF OPERATION
PASSENGER LOAD FACTOR*
(%)
AIR INDIA
DOMESTIC
77.2
INTERNATIONAL
72.7
AIR INDIA EXPRESS
DOMESTIC
73.5
INTERNATIONAL
81,5
ALLIANCE AIR
DOMESTIC
68.3
PRIVATE SCHEDULED CARRIERS
NAME OF THE CARRIER
NATURE OF OPERATION
PASSENGER LOAD FACTOR*
(%)
INDIGO
DOMESTIC
79.4
INTERNATIONAL
82.4
SP!CEJET
DOMESTIC
81.8
INTERNATIONAL
79.0
JET AIRWAYS
DOMESTIC
78.4
INTERNATIONAL
84.3
JET LITE
DOMESTIC
80.1
GO AIR
DOMESTIC
79.1
AIR ASIA
DOMESTIC
76.1
AIR COSTA
DOMESTIC
74.1
VISTARA
DOMESTIC
53.7
*PASSENGER LOAD FACTOR= REVENUE PASSENGER KILOMETERS PERFORMED/ AVAILABLE SEAT KILOMETERS
Note: 1. Air Asia started operating in June 2014.
2. Vistara started operating In January 2015.


Booking of tickets by airlines is a commercial aspect of airline in which Ministry does not interfere; It is decided by airlines themselves depending upon market factors and international practices.
This information was given by Minister of State for Civil Aviation, Dr. Mahesh Sharma in a written reply to a question in Rajya Sabha today. 

***


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