Refund development fee, DGCA tells airlines

Currently, a domestic passenger boarding a plane from IGIA has to pay Rs 100 per flight towards development fee while the amount is Rs 600 for international flyers

The Directorate General of Civil Aviation (DGCA) has asked airlines to refund development fee charged from passengers flying out of the Indira Gandhi International Airport (IGIA) on tickets booked for journeys after April 30.

The Airports Economic Regulatory Authority of India (AERA) had on February 3 directed Delhi International Airport, a joint venture between GMR group, Airports Authority of India and Fraport,  to discontinue levying development fee from May 1.

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IGIA is operated by Delhi International Airport Pvt Ltd (DIAL), which is a joint venture between GMR group, Airports Authority of India and Germany's Fraport AG.

Currently, a domestic passenger boarding a plane from IGIA has to shell out Rs 100 per flight towards Development Fee (DF) while the amount is Rs 600 for international flyers, which is all set to be discontinued from mid-night of April 30.

"AERA vide order non 47/2015-16 issued on February 3, 2016 has decided to discontinue to levy development fee at IGI Airport New Delhi after 24 hours of April 30, 2016 ... Airlines are also directed to remit the development fee amount collected from the passengers who will travel after 24 hours IST of April 30, 2016 but who have booked air tickets prior to April 30, 2016 to the Airports Authority of India," Directorate General of Civil Aviation (DGCA) said in an Aeronautical Information Circular (AIC) issued yesterday.

The regulator had earlier allowed DIAL to levy DF through an order issued in December 2012.

Citing the average monthly collection of Rs 30 crore as DF, the regulator had said the total sanctioned DF amount of Rs 3,415.35 crore is likely to be recovered by April 30, 2016.

To cover the financial gap in developing the project, the allowable DF was determined at Rs 3,415.35 crore.