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.
