The component of the fare covering security charge has been unchanged for the past ten years.
Airfares will get more expensive if the government’s proposal to hike the security charge on air tickets is realized. The government is mulling increasing the security component of ticket prices to cover up for unpaid dues owed to the Central Industrial Security Force (CISF).
The state-owned Airport Authority of India (AAI) and also private airport operators have flagged the issue with the government. Airport operators say that the present charges are insufficient to cover the cost of security. The number of passengers transiting through Indian airports has risen exponentially while security personnel manning these facilities have remained constant, leading to longer delays.
The component of the fare covering security charge has been unchanged for the past ten years. An official in the Civil Aviation Ministry told Business Standard that the hike may be as low as Rs 50. The passenger service fee has two components – a facilitation charge and a security charge.
The facilitation charge goes towards maintaining airport infrastructure such as escalators, baggage belts, and air conditioning. The security component is disbursed to the CISF, which is tasked with guarding Indian airports.
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When airlines collect the fare from passengers, it deposits the security charge in an escrow account, from which it is transferred to the CISF. The CISF has been facing a crunch in funds over delays in payment from authorities at facilities of strategic importance such as factories, nuclear power plants, and airports.
The security charge on air tickets is to be deposited by the tenth of every month in the escrow account. It is then utilized by the Home Ministry to pay allowances and salaries to CISF personnel deployed across the country. The Delhi International Airport Limited (DIAL) owes the CISF Rs 800 crore in unpaid dues.
The issue of non-payment to the CISF has resulted in a tussle between ministries. In the first week of July, the Union Home Secretary wrote to the Civil Aviation Ministry threatening to withdraw CISF cover at Delhi airport if payment for security was not made in a timely manner.
The CISF has been tasked with providing security at 59 of the 98 functional airports in the country. More importantly, of the 59 airports under the CISF, 26 belong to the hyper-sensitive category. Airports such as those in Mumbai and New Delhi have witnessed an enormous rise in passenger footfalls. To meet increased demand, security costs have proportionately gone up.
The number of boarding gates have gone up, as have terminals, checkpoints, and counters for scanning baggage. More personnel have been deployed at these points, adding to the manpower cost.
Delhi airport had clarified that the privatization agreement signed in 2006, entails that security is the responsibility of the state, and costs incurred will be borne by it. The DIAL is currently meeting these expenses through an escrow account, but the collection of dues from passengers is not meeting expenditure at present levels. The deficit between the expenses and security fees at DIAL is around Rs 100 crore.