Mumbai Airport moves AERA on devt fee issue

The GVK-led Mumbai International Airport (MIAL) has approached sectoral regulator the Airports Economic Regulatory Authority (AERA) seeking permission to charge Airport Development Fees (ADF) from passengers.

The move follows the Supreme Court order, which ruled last week that only AERA has the power to allow privately developed Delhi and Mumbai airports to collect the fee.

"GVK has applied (for the permission) yesterday. We are yet to go through the papers," AERA Chairman Yashwant Bhawe told reporters on the sidelines of a PHD Chamber event here.

On being asked as to when will AERA take a view on ADF, Bhawe said, "It has just come (to us), so we cannot comment off hand on what our view will be or how long we will take to form the view."

Dealing with PILs filed by some NGOs against the ADF, the Supreme Court had said the fee could be levied only after AERA approves it and fixes the rates.

It had also said that as there were no refund claims, the money collected so far should be used only for the development of airports, as the passengers who have already paid "cannot now be identified nor can they be traced for making the refund".

As per rough estimates, GMR-led DIAL (Delhi International Airport) has collected about Rs 1,200 crore in fee till 2010 and MIAL has collected Rs 1,300 crore.

ADF was being charged from passengers by DIAL and MIAL from March and April 2009 respectively.

NGOs, including Consumer Online Foundation, had contended that the fee was illegal as it was not approved by AERA.

The court said that after January 2009, when AERA was notified, ADF was not valid as the regulator had not approved it. The court also termed the two letters written by the government to airports directing to levy ADF as "ultra vires" (illegal).

The High Court had, however, upheld Rs 200 as ADF for domestic travel and Rs 1,300 for international trip from those departing Delhi, and Rs 100 and Rs 600 respectively for those from Mumbai airports.