How does the increase in Thiruvananthapuram airport tariff relate to under-recovery during Covid-19
The tariff at Thiruvananthapuram airport has been raised due to under-recovery during Covid-19. Analyze the connection between the increased tariff and the under-recovery.
- The increase in Thiruvananthapuram airport tariff is a measure to recover the losses incurred during the Covid-19 pandemic when travel was significantly reduced.
- Under-recovery refers to the situation where the revenue generated is not enough to cover the operational costs, including staff salaries, maintenance, and other expenses.
- By raising the tariff, the airport aims to generate higher revenue per passenger to offset the under-recovery and improve its financial situation.
- This increase in tariff is a common strategy adopted by airports globally to manage financial challenges caused by a decline in air travel demand.
- The connection between the increased tariff and under-recovery is essential for sustaining airport operations and ensuring financial viability in the long term.
Answered
9 months ago