The Indian aviation firms, who are facing a difficult business period, are opposing a proposed hike in landing and parking charges by the Airports Authority of India's (AAI).

The airlines are urging the airport operators to reduce the charges to boost cash flows and improve footfalls in the country. The cash-strapped industry is facing difficultes to even pay for its fuel and two major firms in the industry, Air India and Kingfisher running up huge past dues that appear difficult to be paid.

Airport operators in the country are also facing the risk of non-payment by airlines nearing bankruptcy and thus want to secure their position by increasing the rate of taxes it charges airlines for using the airport. Besides voicing their opposition to the hike in rate, the airlines are also opposing Delhi International Airport Pvt Ltd's (DIAL's) plans to impose a new levy called user development fee from April.

Some airlines re protesting by withdrawing flights from Delhi and others are threatening to follow suit as DIAL has already approved a threefold increase in rates from April. The International Air Transport Association has pointed out that if DIAL approved the 334 per cent hike, the IGI will have the highest user charges in the world.

The international body ahs recommended a review of the agreement that required DIAL to share 46 per cent of its revenue with AAI.