The cost of air travel between Delhi and Mumbai is set to rise as the Airports Economic Regulatory Authority (AERA) has announced a user development fee for the Delhi and the Mumbai airports, reports CNBC-TV18’s Swati Khandelwal Jain.
DIAL, the operator of the Delhi airport is not satisfied with the quantum of the hike which will come into from the May 15 of 2012.
Flying from Delhi will become more expensive from May as sector regulator, AERA has announced a three-and-a-half fold hike in tariffs. The new charges will be effective from May 15 for a period of 2 years.
The user development fee (UDF) will be levied on departing and arriving passengers, who already pay a development fee of Rs 200 on domestic departures and Rs 1,300 for every international trip from Delhi.
With the UDF coming into effect, passengers on domestic routes departing from Delhi will have to pay between Rs 231-462 per head, while arriving passengers will have to shell out between Rs 195-391.
For international passengers departing from Delhi, a UDF of Rs 534-1,068 will be levied, while arrivals will have to pay anywhere between Rs 436 and Rs 881.
But despite the hike in UDF, DIAL is unhappy. It had proposed a 774% hike in tariffs and says the revision is much below expectations as the charges have been stagnant for the last decade.
DIAL also claims it is making losses due to the delay in revision of the charges and significant airline overdues. DIAL made a loss of Rs 450 crore in revenues last fiscal and fears losing Rs 995 crore next fiscal.
AERA recently gave the go-ahead to MIAL, the operator of the Mumbai airport to charge Rs 100 from domestic passengers while international passengers will have to pay Rs 600 per trip. MIAL can charge the fee till February 2014.
With AERA soon allowing even MIAL to charge a UDF on both departing and arriving passengers, air travel especially between these two airports will become a lot more expensive.
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