Various fees, which are included in the price of airline tickets, are set to rise at Taoyuan International Airport following approval by the Ministry of Transportation to adjust the fees on September 1, Apple Daily reported.
Airport fees that are set to increase include baggage facility fees, gate use fees, accommodations, and airline fees, all of which will be passed along to consumers. The overall increase this year is estimated at about 20%.
Taoyuan International Airport Corp. (桃園機場向航空公司) noted that the fees have remained the same since 1996. Last year it reviewed the fees and requested the Ministry of Transportation to make adjustments. The ministry approved the adjustments to take effect on or after September 1.
Taoyuan International Airport Corp. sought 60% fee increase, but airlines said that they could not take on such a significant increase in fees. The airport will spread out the rise in fees over the next three years, with the cumulative increase totaling about NT$400 million (US$13.2 million) in the first year, and NT$700 million (US$23.1 million) in the second. The total increase by the third year will be NT$1 billion (US$33 million).
China Airlines and EVA would pay the largest share of the fee increases as they rent the most space at the airport, according to UDN. The government also rents a significant amount of office space for use by the police, customs, and quarantine authorities.
The airport claims that the fee increases should only inflate airline ticket prices by about NT$40 (US$1.32). It expects that revenue will increase by NT$100 million (US$3.3 million) in the first year.
Taoyuan International Airport Corp. also announced that it plans to renovate Terminal 2 after the completion of Terminal 3 in 2021. Renovations are expected to take two years to complete, UDN reported. Airlines and businesses at the airport called the plan a “disaster” as the airport did not fully communicate the plan to those that would be affected.
The announcement also did not indicate whether the terminal would be partially or entirely closed during renovations.