Centre has stated to adopt Hybrid till approach for calculating airport fees to state run airports. Currently they are following Single till model.

Difference b/w Single till model and Hybrid till model:

There will be a predetermined internal rate of return(IRR) to the operators of airport as per the concession agreement. Due to this return we expect them to operate.

In single till model:  Both aeronautical (landing, parking and ground handling) and non aeronautical (duty-free shops, hotels, restaurants and airport infrastructure) segments will be taken into consideration to determine IRR, which gives the operator more returns.

In Hybrid till model: Aeronautical and 30% of non-aeronautical segments will be taken into consideration to determine IRR, which gives the operator the returns less compared to Single till model.

An experts opinion: Due to less returns, operators charge more User Development Fees on passengers, making air travel more expensive. It contradicts one of the stated intentions of National Civil Aviation Policy, to make flying affordable.

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