Aircraft navigation facility charges on foreign flights to soar after 38 years

The Government has decided to increase aircraft navigation facility charges on foreign flights by 57% after 38 years.

Announcing the new tariffs at a press conference held at the Ministry of Transport yesterday, Minister of Transport and Civil Aviation Arjuna Ranatunga said the decision was taken in keeping with the International Civil Aviation Organization (ICAO) policies for the determination of air navigation charges.

He said that with the revision of the charges, Sri Lanka will earn an additional income of Rs. 813 million annually.

Airline Navigation Facilities and Service Charges are fees charged by a country for foreign aircraft flying over the country’s airspace. Charges are also a major source of foreign exchange for a country in the aviation sector.

In Sri Lanka, the Civil Aviation authority under the Ministry of Transport and Civil Aviation is entrusted with charging the air navigation fees.

The last time the Civil Aviation authority revised the fees was in 1981. It is noteworthy that these fees were revised after 38 years.

According to Minister Ranatunga, about 125 flights are using Sri Lankan air space. Previously, Sri Lanka collected a daily income of Rs. 3.9 million from providing Sri Lankan air space and services amounting to an annual income of Rs. 1412.6 million.

“With the new tariff revision, the daily payments will increase to Rs. 6.1 million and the annual income will increase to Rs. 2225.6 million. It will be a 57% increase,” the Minister said.

Minister Arjuna Ranatunga said that the funds will be utilised primarily for the development of domestic airports and associated development.

“Our airspace is twenty times larger than our country. That airspace is a source of wealth. But no one had tried to take advantage of it before. Especially, in comparison to countries like India, our country’s air traffic facilities and service charges were very low. We lost a lot of foreign exchange. But after a long effort, we were able to increase these charges,” Minister Ranatunga said.

The new tariff will be effective from next February, he added.

“There is a great demand for our airspace, due to the increased activity of Indian airspace. Therefore we expect income from these charges will be increased further in the future.”