AERA allows class-based tariff on Delhi airport's international passengers

However, operator's proposal to charge higher tariff during peak hours refused by AERA

The Airport Economic Regulatory Authority (AERA) has approved a proposal from the Delhi International Airport Limited (DIAL) for a class-based tariff structure for international passengers. This means that business and first-class travellers will now have to pay a higher User Development Fee (UDF) than economy and premium economy passengers till 2028-29.

 

This is the first time that a class-based tariff has been imposed at any Indian airport.

 

AERA justified the decision, saying it is "natural" given the additional services business-class passengers receive, such as dedicated check-in lanes, security clearance, immigration, and boarding gates. 

 

Till date, all international passengers departing from the Delhi airport paid ₹129 as UDF. From April 16, an international economy passenger will have to pay a UDF of ₹650 while an international business passenger would pay a UDF of ₹810, according to AERA's tariff order issued on Friday.

 

Meanwhile, AERA has refused to impose such a class-based tariff on domestic passengers. 

 

The regulator has outright rejected GMR Group-led DIAL's proposal to charge passengers a higher UDF based on travel time.

 

The airport operator had sought to impose higher UDF on all passengers travelling during peak hours (5:00–8:55 am and 5:00–8:55 pm).

 

The regulator has also rejected a proposal to increase the UDF on departing domestic passengers from ₹129. 

 

However, it has permitted the airport operator to charge ₹56 as UDF from domestic passengers arriving at Delhi airport starting April 16. Currently, no UDF is levied on disembarking domestic passengers.

 

"UDF now has been determined for both embarking and disembarking passengers as a significant portion of the airport infrastructure including aero bridges, travelators, conveyor belt, arrival facilities inside the terminal building are also being used by the disembarking passengers," AERA said.

 

Distributing the overall UDF charges between embarking and disembarking passengers in a suitable proportion of their actual usage of airport facilities would lead to an equitable distribution of the tariff burden among the users of the airport and would also spread out the costs among airport users, it said. 

 

This practice is followed globally and was previously implemented at Delhi airport from 2012 to 2017, it added.

 

AERA said its decision to not change the prevailing UDF (₹129) for domestic air passengers, which comprise 80 per cent of the total air traffic of Delhi airport underscores its commitment to protecting passenger interests, ensuring affordability, and fostering growth in the domestic aviation sector. 

 

"This treatment in conjunction with the tariff adjustments for international travelers and other aeronautical charges will support infrastructure development in the Delhi airport and ensure the financial viability of the airport operator," it said.

 

"The airport operator had proposed a 730 per cent increase in prevailing airport charges. However, after conducting a thorough analysis and applying prudence checks to each regulatory building block, AERA has determined a significantly lower increase of 140 per cent over the existing airport charges. This adjustment will enable the airport operator to meet essential capital expenditure requirements, maintain operational efficiency, and ensure service quality in line with the standards outlined in the State Support Agreement (SSA) and the Operation, Management, and Development Agreement (OMDA)," AERA added. 

Tariff hike

 

> Currently,  user development fee for international passengers departing from Delhi airport is ₹129

> From April 16, economy class passengers will have to pay a user development fee of ₹650

> Passengers boarding business class flights will have to pay ₹810 as fee