Aviation Min to cut levy at Mumbai, Delhi airports from Jan

Moneycontrol Bureau

Air passengers have a reason to cheer as the civil aviation ministry is likely to slash airport development fee (ADF) by 54% at Delhi and Mumbai airports from Jan 1, says a report in Business Standard.

ADF has always been opposed by passenger associations, on grounds that it is unfair to charge fliers more because airport developers had a cost-over run. Airlines are also not much in favour of ADF, as it makes their operations unfeasible.

ADF is charged by developers to fund the financial gap while modernizing airports. While GVK, the operator of the Mumbai airport says its project cost has escalated by Rs 2,000 crore, GMR which has upgraded Delhi airport also has a similar story.

Meanwhile, from January 1, international passengers will have to pay Rs 600 against the Rs 1,300 they are paying currently. Similarly, the Rs 200 every domestic passenger pays would be halved.

The civil aviation ministry is said to have agreed to the suggestion of the Airports Economic Regulatory Authority (Aera) that the three-year ADF-recovery period of Delhi International Airport Ltd (DIAL) be extended by two years, hence fee is lowered

Earlier in October, the government had decided to abolish ADF at Delhi and Mumbai airports. Under the plan, mooted by the civil aviation ministry, the Airports Authority of India ( AAI) had to infuse Rs 288 crore and Rs 102 crore for the Mumbai and Delhi airports, respectively, against its 26 per cent share in both joint ventures. The other private players also had to infuse commensurate amount as equity and debt. But GMR and GVK had indicated they could not infuse equity.

In October, the government had decided to abolish ADF at Delhi and Mumbai airports from 2013. Under the plan, mooted by the civil aviation ministry, the Airports Authority of India ( AAI) had to infuse Rs 288 crore and Rs 102 crore for the Mumbai and Delhi airports, respectively, against its 26 per cent share in both joint ventures. The other private players also had to infuse commensurate amount as equity and debt. But GMR and GVK had indicated they could not infuse equity.