AERA orders reduction in airport charges

Fliers at the Indira Gandhi International Airport (IGIA) here may not have to shell out a heavy fee from next year with tariff regulator AERA ordering a steep 93 per cent reduction in airport charges.
However, the reduced charges will not be implemented till appeals on the earlier rate order are settled by the Airports Economic Regulatory Authority Appellate Tribunal (AERAAT), it said.
According to Airports Economic Regulatory Authority, the new charges will be applicable from January 2016 to March 2019 once the appeal gets disposed by AERAAT.
Significantly, Delhi International Airport Limited (DIAL), the joint venture company which operates IGIA, had sought 42.6 per cent hike in airport charges.

According to AERA, while no user development (UDF) fee will be charged from both domestic and international arriving passengers, a UDF of Rs 10 and Rs 45 will be charged from departing domestic and international passengers.
At present, Delhi International Airport Ltd (DIAL) levies Rs 275-550 as UDF on each departing passenger and Rs 233-466 on each arriving one, on domestic flights.

International passengers departing pay Rs 635-1,270 while arriving passengers pay Rs 518-1,048 as UDF.
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.

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 2012 tariff hike order is under appeal before the AERAAT and a decision on the same has yet to come.
Aera has allowed DIAL to implement only an 89.4 per cent reduction instead of 96.08 per cent as an interim measure to help the airport operator meet its cash deficit. These charges include levies on landing and parking of aircraft, common use terminal equipment charges, UDF and fuel throughput charge.
"With regards to implementation of this order, the authority notes that the 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 high court has indicated a time-frame for Airports Economic Regulatory Authority Appellate Tribunal (AERAAT) to dispose the appeals.

The authority has appealed against this order of high court and depending upon the outcome of the legal process, the date of implementation of this tariff order will be decided," AERA said in its order.
The tariff regulator had earlier in February, proposed a 78.4 per cent reduction in airport charges at the IGIA.