Fears are being expressed that airlines will pull out on account of such deposits. The manner in which the circular dated 30-12-2015 was conveyed to the industry by the Director of Airport on June 1, 2015 leaving no time for raising objections to the new guidelines has also angered the industry.
According to the circular issued by the AAI, operators confirming up to 25 operations will have to pay Rs 25 lakh, Rs 50 lakh for more than 25 operations up to 50 operations, Rs 75 lakh for more than 50 operations up to 75 operations and Rs 1 crore for more than 75 operations along with relevant permits with DGCA, approval of Ministry of Tourism and clearance from BCAS. To rub salt to the wounds, if the slots applied by the airlines are cancelled or not utilized during the season then a penalty of Rs 1 lakh per flight will be levied. The President of TTAG, Francisco de Braganca said the body had made representations to the government to take up the matter with the Union Civil Aviation Ministry and the Airports Authority. He said, “A government delegation led by the minister of tourism and consisting of director of tourism, president of TTAG and other stake holders of the industry was scheduled to meet the Union civil aviation ministry, but on account of the minister not being in town the meeting was postponed. The State government is trying to fix a meeting afresh sometime after July 6, in New Delhi. The State government has taken the initiative in setting up meetings at the central level and we are awaiting the confirmation.”
Speaking of the effect on the charter business in the State, he said it could be disastrous given that airlines could pull out on account of such deposits. The charter industry, he said, was airline driven and in case the airlines find it expensive, they could explore the possibility of pulling out from Goa operations.
Asked what action he would contemplate if the government refused to accede to their demand to reduce the deposit, he said it was a matter which had to be decided by the Central government. The consequences, he felt, could be serious. He said, “If the airlines pull out, the charter operators will also follow suit. We will be in a worse recession compared to the last year. Our government needs to take up the matter with the Central government in earnest and immediately, as the matter has to be decided before the end of August when airlines need to make applications for allotment of slots”
Another operator who did not wish to be identified said the issuance of this circular was not right. He argued the airport authority was the service provider to airlines and followed the guidelines set by the Civil Aviation Ministry. Any change of the guidelines he said would be required to be done in pursuance of a policy decision of the Ministry of Tourism. Given this reality, the operator believed the Executive Director of the AAI cannot over ride a circular dated May 10th 1996 issued by the Dept of Tourism. The increase in deposit he pointed out was 1250% in relation to the previous years. Last year the season was blighted by a 25% drop in charter flights into Goa.
Another matter that has miffed everyone is the time given to charter operators to submit proposals was impractical. According to the circular issued by the AAI, requests will be processed between August 16 and 31. The slots allocation permission will be issued from Sept 1-7. In addition, if any operator wants any change, he may apply for the same along with slot changing fee of Rs 1 lakh per flight which is non-refundable. Re-allotment of slots will be done on a first-come and first-serve basis.
Bush Miranda a charter operator in the State said it was like a dark cloud hanging over the industry which if not tackled could ruin the industry.
Tourism Minister Dilip Parulekar said he was working on reducing the deposit and he would be meeting with the members of the trade sometime next week. The minister also revealed that he was trying to reduce the visa charges levied. He said “Sri Lanka and Thailand charge $30 for a visa whereas we charge $ 120 which can put off certain tourists.”
Perhaps the final word could go to a charter operator who is based in the State for a long time and was not keen on coming on record who said: “Mining has been banned and we all know what it did to the economy and if this issue is not sorted out then you can write the obituary of the tourism industry”
Dramatic perhaps but given the state of the economy not surprising.
