International Travelers to Face Increased Fees at Delhi Airport Starting April 16
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Synopsis
From April 16, international passengers will incur higher fees at Delhi airport due to approved increases in user development fees by the Airports Economic Regulatory Authority. Domestic fares remain unchanged as the authority acknowledges the dominance of domestic traffic at the airport.
Key Takeaways
- International passengers will pay higher fees from April 16.
- UDF for domestic travelers remains at Rs 129.
- New tariff structure increases user development fees significantly.
- AERA approved a 148% increase in aeronautical tariffs.
- Landing charges waived for new international destinations.
New Delhi, March 30 (NationPress) International travelers will be required to pay increased fees for departing from Delhi airport effective April 16, as the Airports Economic Regulatory Authority (AERA) has sanctioned higher and variable user development fees (UDF) for both economy and business class passengers.
Considering that domestic flyers constitute 80% of the overall traffic at Delhi's Indira Gandhi International Airport (IGIA), AERA has opted to maintain the UDF for domestic travelers at Rs 129 for the upcoming fourth control period.
According to GMR Airports in a regulatory announcement, the current yield per passenger of Rs 145 from the third control period will rise to Rs 360 for the remaining four years of the control period, which extends until March 31, 2029.
At present, UDF charges are the same for both domestic and international passengers. However, with the updated tariff structure, international passengers will incur significantly elevated fees, depending on their travel class.
GMR Airports has notified stock exchanges that AERA has endorsed various principles of a variable tariff plan for Delhi airport, resulting in a remarkable 148% increase in the existing aeronautical tariff for the fourth control period culminating on March 31, 2029.
AERA has sanctioned increased and variable UDF for economy and business class travelers, whereas the UDF for domestic passengers remains stable. The escalated tariffs for the fourth control period—spanning April 1, 2024 to March 31, 2029—will take effect from April 16.
According to GMR Airports, AERA has accepted several principles of the proposed variable tariff plan, which divides the UDF between embarking and disembarking passengers.
GMR Airports' subsidiary, Delhi International Airport Ltd., manages Indira Gandhi International Airport in the nation's capital. Following the public consultation paper released on January 31, AERA has raised the current aeronautical tariff by 148%.
DIAL had initially suggested a staggering 730% increase in existing fees. However, after comprehensive evaluation and regulatory examination, AERA decided on a significantly lower adjustment of 148%.
The filing also indicated that landing fees for wide-body aircraft from scheduled airline operators flying directly to new international destinations will be waived.
This move aims to promote more international long-haul flights, positioning the airport as a hub. Furthermore, GMR Airports highlighted that AERA acknowledged the TDSA judgement from July 21, 2023, which resolved several critical issues favorably for DIAL.
However, since AERA has contested the TDSAT ruling in the Supreme Court, its implementation has been postponed pending resolution of this matter in the court.
The company noted that under a Supreme Court ruling from July 11, 2022, regarding the tariff order for the first control period, AERA has incorporated adjustments concerning corporate tax computations on aeronautical earnings during the present fourth control period of the tariff order.
