The International Air Transport Association (IATA) has expressed concerns regarding changes made to the finalized National Civil Aviation Policy released by the Indian government.
“Overall, the final National Civil Aviation Policy is a step in the right direction. We welcome the fact that the government has responded to some of the feedback from the industry. However, we are concerned with the way the policy on hybrid till was written. While the draft NCAP indicated that ‘tariff at all future airports will be calculated on a hybrid till basis’, the final policy states ‘future tariffs at all airports will be calculated on a hybrid till basis’”, said Conrad Clifford, IATA’s Regional Vice President for Asia Pacific. “This change will impact the basis for tariff determination for private airports in India, and also signal AAI to switch from the Single-Till approach used currently, to the Hybrid-Till. This makes AERA a toothless entity. Passenger charges in India will increase, making air travel more expensive. And it contradicts one of the stated intentions of the NCAP to make flying affordable.”
IATA will be approaching MoCA to clarify the seemingly minor change in the wording, which has a major impact on the airport charges landscape in India.

“The NCAP has reduced economic regulation in India to a single bullet point by mandating hybrid till as the basis for tariff determination, while being silent on other critical aspects of economic regulation such as the rate of return, regulatory asset base, separation of airport assets and costs, etc. It ignores the conclusions reached by AERA and the Ministry of Finance after an extensive evaluation that the single till is the most appropriate approach for India, with no explanation given for upturning AERA’s earlier Order,” said Clifford.
Last year, IATA provided a comprehensive response to India's draft National Civil Aviation Policy.