AAI goes for direct billing to avoid ‘Devas' fallout

AAI has started billing and collection with effect from April 1 from foreign operators. The collection would be through AAI bank account and is done to protect the interest of AAI. A report.

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The Airports Authority of India (AAI) has announced its withdrawal from the international system to collect overflight and landing fees. This withdrawal furthers AAI's efforts to evade enforcement of the arbitration award against India held by Devas shareholders.

As a consequence, AAI has returned to direct billing and collection of navigation charges from foreign airlines flying to India or using its airspace. As the single window navigation service provider, AAI collects navigation charges from domestic and foreign airlines for flights within the country, to/from India and those overflying the Indian airspace. For the domestic operators, AAI collects this fee directly. Not so, though, for foreign operators.

Beginning in 2007, IATA has been collecting overflight charges on behalf of AAI from foreign airlines. AAI shares air traffic data with IATA which calculate the fee and make the process glitch-free, to make the process simpler and error-free.

According to The Business Standard: “AAI has started billing and collection with effect from April 1 from foreign operators. The collection would be through AAI bank account and is done to protect the interest of AAI," the authority's spokesperson said."

THIS PRECIPITOUS ACTION BY AAI CONFIRMS THE REALITY THAT DEADBEAT SOVEREIGNS THAT DISHONOUR THEIR TREATY OBLIGATIONS AND INTERNATIONAL JUDGMENTS HAVE NOWHERE TO HIDE, AND NO CHOICE BUT TO WITHDRAW FROM THE CIVILISED WORLD OF TRADE AND COMMERCE LIKE OTHER PARIAH STATES.” — JAY NEWMAN, Senior Advisor, Devas