Delhi airport charges to be cut by 89%

Source:- thehindu.com

Air tickets for passengers flying in and out of the Delhi airport will become cheaper after the Union government ordered a reduction in airport charges by 89.40%.

According to the new tariff structure effective from July 7, a User Development Fee (UDF) of ₹10 and ₹45 will be levied on outbound domestic and international passengers, respectively, at Delhi airport. There will be no UDF on passengers arriving at the Delhi airport on international and domestic flights.

DIAL levied between ₹245 and ₹490 as UDF on each departing passenger and ₹207-₹415 on each arriving one, on domestic flights.

International passengers departing from Delhi airport were charged ₹565-₹1,131 and arriving passengers had to shell out ₹462-₹933.

Apex court order

The move followed an order passed by the Supreme Court on a petition by national carrier Air India, earlier this week, resolving the long-standing dispute between airport regulator Airports Economic Regulatory Authority of India (AERA) and GMR Infrastructure-led Delhi International Airport Limited (DIAL) on airport charges.

The Supreme Court vacated an order passed by Delhi High Court which had put a stay on implementing a fresh tariff order issued by the airport tariff regulator.

The new airport charges are based on an order passed by AERA in December 2015 for 2014-19, which could not be implemented due to pending litigation.

Airport charges are fixed for a five-year duration, known as the control period. During the first control period (2009-2014), AERA had allowed DIAL to increase airport charges by 346%, which was against DIAL’s demand for a 775% raise.

DIAL had challenged the airport tariff in the AERA appellate authority.

Meanwhile, AERA initiated the process of fixing aeronautical charges for Delhi airport for the period between 2014 and 2019. It extended the 346 per cent hike charged by the Delhi airport on several occasions and clarified an adjustment will be made for the coming five-year period.

DIAL had realised Rs 188 crore in excess of its revenue target for 2014-19 as on April 1, 2014. National carrier Air India alleged that DIAL would have collected around Rs 9,000 crore more by the end of 2019 if the old tariff continued.

AERA then passed an order for a 78% hike in January 2015 in the airport charges for 2014-19. However, DIAL moved the Delhi High Court and managed a stay on the tariff order which put a status quo on the airport charges till appeals were disposed against the tariff order cases pending in AERA appellate tribunal.

GMR Infrastructure told the Bombay Stock Exchange on Friday that it will work “expeditiously” with appellate tribunal of AERA to “reach a fair and positive outcome in the two months directed by the Supreme Court.”

“The Honourable Supreme Court has also directed the appellate tribunal to decide the tariff appeals filed by DIAL expeditiously preferably within two months from the date of the order of the Hon ble Supreme Court. DIAL would engage constructively with the regulator to endeavour a balanced implementation and will work expeditiously with the appellate tribunal to reach a fair and positive outcome in the two months directed by the Hon ble Supreme Court,” the company said.