DIAL to submit response to proposed reduction in airport charges

The Delhi International Airport Limited (DIAL) Thursday said it intends to submit a response to the airport regulator's proposal for reducing tariff at the Indira Gandhi International Airport (IGIA).

"The company intends to submit a response to the consultation paper in support of the company's previously-submitted tariff proposal," a spokesperson for the firm which operates and manages IGIA said.

"AERA's final determination of the aeronautical tariffs for the second control period will only be issued on completion of the consultative process amongst stakeholders."

In a consultation paper on its website, the AERA (Airports Economic Regulatory Authority) said it is proposing a 78.24 reduction in the aggregate revenue requirement (ARR) for the second control period from 2014 to 2019.

The AERA allows DIAL to levy charges on passengers and airlines to cover the cost incurred on developing the airport infrastructure.

The charges are determined for a duration of five years known as the control period. The first such period ran from 2009 to 2014.

"In other words, positive X-factor implies a required reduction in aeronautical tariff from the date considered for such implementation of tariff," the 350-page consulting paper read.

"Accordingly, the Authority proposes to bring the above X-factor into effect in respect of aeronautical tariffs at IGI Airport and expects DIAL (Delhi International Airport Limited) to submit the tariff card addressing the same."

Arriving and departing passengers have to pay a user development fee (UDF), which is levied to finance mega infrastructure projects like the IGI airport's Terminal-3 (T3).

Airlines too are subject to landing and parking charges. The proposed reduction in tariff will reduce costs for both passengers and airlines using the IGIA.

Currently, domestic passengers have to pay anywhere between Rs.200 to Rs.500, while international passengers are levied charges ranging from Rs.500 to Rs.1,200.

In 2012, the AERA had allowed DIAL to raise aeronautical charges by 346 percent.