Delhi airport's fee hike: Do other airports charge passengers similarly?

Delhi International Airport Ltd's proposal to introduce a class-based user development fee structure gets the green light. Here's a look at how major global airports charge flyers

Business-class passengers flying on international routes from Delhi’s Indira Gandhi International Airport will pay higher User Development Fees (UDF) than economy-class travellers, from April 16. The Airports Economic Regulatory Authority (AERA) has approved the Delhi International Airport Ltd’s (DIAL) proposal to introduce a class-based UDF structure, marking the first instance of such a differentiation at an Indian airport.

 

Business class flyers to pay more

  Under the new fee structure, passengers departing on international flights in economy class will be charged ₹650, while business-class travelers will pay ₹810. Additionally, passengers arriving on international flights, who were not previously subject to UDF, will now have to pay ₹275 for economy class and ₹345 for business class. However, AERA has denied DIAL’s request to introduce a similar differential pricing model for domestic business-class passengers and has also rejected a proposal to implement peak-hour UDF surcharges for flights operating during high-traffic periods.

   

The introduction of class-based UDF has triggered strong opposition from the International Air Transport Association (IATA), which has termed the move “unnecessarily complex and discriminatory.” IATA argues that such a pricing model violates the International Civil Aviation Organisation (ICAO)’s non-discrimination policies and goes against DIAL’s Operation, Maintenance, and Development Agreement (OMDA) with the Airports Authority of India (AAI). Despite these concerns, DIAL has defended the change, stating that the increase will lead to only a marginal rise in airfare, estimated at 1.5 per cent on average.

 

How do other major airports charge passengers?

  Globally, most major airports do not explicitly charge a separate UDF but instead include passenger-related fees within the ticket price under different categories such as Passenger Service Charges or Airport Development Fees. For example, London’s Heathrow Airport charges a Passenger Service Charge, which is incorporated into ticket prices and averaged £31.57 per passenger in 2023. This fee is dropped to £25.43 in 2024 and will remain steady until 2026. However, unlike Delhi, Heathrow does not differentiate charges based on passenger class.

 

Does JFK airport charge a user fee from passengers?

  Meanwhile, at New York’s John F Kennedy International Airport (JFK), passengers pay a Passenger Facility Charge (PFC) of $4.50 per ticket, which contributes to airport maintenance and expansion projects. This charge, however, applies uniformly across all passengers, without any class-based variations. Additional airport fees such as landing charges and terminal usage fees are included in airline costs and indirectly passed on to passengers but remain uniform for all ticket categories.

 

What about Dubai and Singapore airports? 

Dubai International Airport follows a similar model, imposing a Passenger Service Charge of United Arab Emirates Dirham (AED) 75 per departing passenger along with an additional Passenger Security & Safety Fee of AED 5. These charges, which are also included in ticket prices, are the same for economy and business-class passengers alike. 

 

In Singapore, Changi Airport charges a Passenger Service and Security Fee (PSSF) of S$46.40, an Aviation Levy of S$8, and an Airport Development Levy of S$10.80 per departing passenger. As with most other global airports, these charges do not vary based on travel class.

 

Do Mumbai and Bengaluru airports charge UDF? 

Mumbai International Airport Limited (MIAL) had earlier put forward a revised User Development Fee (UDF) structure, describing it as a strategic move to improve passenger facilities and infrastructure at Chhatrapati Shivaji Maharaj International Airport (CSMIA) in Mumbai. The proposal, submitted to the Airport Economic Regulatory Authority (AERA), suggests a UDF of ₹325 for domestic departures and ₹650 for international departures but has refrained from asking for class-based fee structures.

 

Since the start of FY25, 16 airports have increased their User Development Fees (UDF), a charge aimed at covering revenue shortfalls and ensuring fair returns for airport operators. For instance, Bengaluru airport charges ₹550 UDF for domestic flyers and ₹1,500 for international passengers.

 

According to the civil aviation ministry’s response to a parliamentary query last year, airports in Bengaluru, Hyderabad, Mangalore, Thiruvananthapuram, Ahmedabad, Jaipur, Lucknow, Kannur, Kochi, Chennai, Kozhikode, Kolkata, Goa, Bhubaneswar, Patna, and Srinagar have raised UDF by 2 per cent to 200 per cent last fiscal year.

 

Class-based airport fee – a bone of contention 

The introduction of class-based UDF at Delhi Airport marks a shift in how airport charges are structured in India. While the move is aimed at generating additional revenue for infrastructure development, some critics have raised concerns about fairness in passenger charges and adherence to international aviation regulations. They argue that charging business-class passengers more for airport development sets a precedent that could eventually extend to other airports across the country.