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Private business jet operators, MIAL fail to resolve penalty row

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Anand Shimpi (Image courtesy: theverge.com)
Anand Shimpi (Image courtesy: theverge.com)

The impasse over levy of "hefty penalties" on private business jet operators by Mumbai Airport authorities for extended use of parking bays at the airport continued with both sides failing to arrive at a solution on Wednesday.

A meeting between representatives of some private business jet operators and Mumbai International Airport Ltd (Mial) officials ended in a deadlock.

"These charges are not acceptable to us and we demand immediate revocation of these orders as they are not approved by Airport Economic Regulatory Development Authority, which is the deciding authority on such penalties," a representative from a private jet operator told reporters.

The meeting, which lasted for over one-and-a-half hour, saw some healthy discussions on the issue, but it failed to arrive at any tangible solution, he said.

The penalty charges, levied by MIAL, range between Rs 1,000-15,000 per hour, depending on the type of aircraft. They have come into effect from July 1 and are applicable on private aircraft registered outside Mumbai and parked at the domestic airport beyond an agreed number of days.

"At a time when the entire aviation sector is reeling under the impact of heavy taxes and high jet fuel prices, these type of penalties, if not removed, would be a setback for the business jet operators," he said.

Defending its move, MIAL said the decision to impose penalties have been taken in view of airport security as well as to decongest the already land-constrained airport.

"For enhancing airport safety, MIAL has introduced a penal charge on non-Mumbai based private aircraft for overstaying their approved time slots from July 1," a spokesperson said.

"The move is also to deter private aircraft violating slots allotted to them beyond stipulated time and discourage unauthorised parking at the airport," he added.