Millennium Post

Airports economic regulator for 78.4% charge cut at Delhi’s IGI

AERA, however, said the implementation of the proposal will be done once the Delhi International Airport Ltd (DIAL) submits fresh rate slabs for its approval.

DIAL is a joint venture between the Airports Authority of India (AAI) and GMR group with 26 per cent and 74 per cent holding, respectively.

“The Authority notes that DIAL has proposed an X factor of negative (-) 42.6 per cent in its revised submission... whereas the Authority has worked out an X factor of (+) 78.24 per cent. Accordingly, the Authority finds that the existing aeronautical tariffs at IGI Airport, Delhi, will need to be reduced by such an extent,” the paper said.

The Authority shall pass an order in the matter only after considering the submissions of the stakeholders as per the provisions of the AERA Act, it said. The tariffs for Delhi Airport were last revised in 2012 when AERA allowed DIAL to hike charges by 346 per cent as against 775 per cent sought by the private operator.

The proposal, when actually implemented, will come as a big relief to the flyers, who currently may have to shell out up to Rs 550 for domestic journeys and up to Rs 1,270 for international flights towards airport charges, which include landing and parking charges and a user-development fee.

The International Air Transport Association (IATA) has often termed Indian airports as being the “most expensive” ones. Describing the reduction in charges as a “positive” move, IATA said it would be big relief to air travellers. “This is a positive

development. AERA’s proposal of an X-factor of +78 per cent will translate into reduced charges at
Delhi airport.

“That will be a welcome relief for airport users who have been impacted by the over 340 per cent increase in airport charges since 2012,” IATA Regional Vice President for Asia Pacific, Conrad Clifford, said in a statement.

He, meanwhile, said that IATA was still waiting for the tariffs for the second control period, which should have been determined 10 months back.

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