IATA welcomes move to cut airport charges at Delhi

The International Air Transport Association (IATA) Thursday welcomed the airport regulator's proposal to reduce tariff at the Indira Gandhi International Airport (IGIA) by 78 percent.

The industry body of air transporters described the proposal made by the regulator, Airport Economic Regulatory Authority (AERA), in its consultation paper posted on its website as a positive development.

"This is a positive development. AERA's proposal of an X-factor of plus 78 percent will translate into reduced charges at Delhi airport," said Conrad Clifford, regional vice president, Asia Pacific, IATA.

"This will be a welcome relief for airport users who have been impacted by the over 340 percent increase in airport charges since 2012," he added.

According to Clifford, IATA is still waiting for the tariffs for the second control period, which should have been determined 10 months ago.

"It is important that the reduced charges be implemented promptly so that airlines and passengers using Delhi airport will not be paying more than they should in fees and charges," Clifford said.

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

AERA allows the Delhi International Airport Limited (DIAL), the firm which operates and maintains the IGIA, 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 (T-3).

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.