Fliers to benefit as regulator moots cut in IGI Airport charges

In what could become a significant respite to travellers flying in and out of the national capital, the levy for airport charges on passengers and airlines has been proposed to be slashed by around 96 percent.

The new tariff rate for the second control period which formally runs from April 1, 2014, to March 31, 2019, was disclosed in an order issued by Airports Economic Regulatory Authority of India (AERA).

Among other things, the order issued on December 10 has brought down the user development fee (UDF) charged on departing domestic passenger to Rs.10 and to Rs.45 for international travellers.

Currently, Delhi International Airport Limited (DIAL), the firm which operates IGI Airport charges UDF ranging from Rs.275 to Rs.550 from domestic departing passengers, whereas the international departing travellers are levied an UDF ranging between Rs.635 and Rs.1,270.

Nevertheless, as an interim measure AERA has allowed DIAL to reduce only about 89.4 percent of overall charges. The measure will allow DIAL to meet its cash deficit by Rs.691.50 crore.

However, the proposed reduction in overall airport charges for the second control period cannot be implemented due to existing legal proceedings going on in Airports Economic Regulatory Authority Appellate Tribunal (AERAAT).

"With regards to implementation of this order, the authority notes that the Hon'ble High Court has permitted DIAL to charge the tariff applicable for the first control period till AERAAT decides on the appeals filed by DIAL, and the Hon'ble High Court has indicated a time frame for AERAAT to dispose the appeals," AERA said in its order.

"The authority has appealed against this order of Hon'ble High Court and depending upon the outcome of the legal process, the date of implementation of this tariff order will be decided."