Cheaper Delhi flights? 96% cut in airport fees proposed

In what would be a setback for Delhi International Airport Ltd (DIAL), a unit of GMR Infra, the Airport Economic Regulatory Authority (AERA) has proposed a 96.08 percent cut in airport charges for the Indira Gandhi International (IGI) Airport, something that is typically passed on to passengers.Mint reports that the order comes even as the Delhi airport's operator had proposed to hike airport charges by 42.6 percent for the period between April 1, 2014 and March 31, 2019) and even as DIAL had legally challenged AERA's previous order that had proposed a 78.4 percent reduction in airport charges for the abovementioned period.Airport charges, levied to finance capital expenditure and pay for maintenance, are set for five-year durations called a control period.In its order, AERA noted DIAL's legal challenge to its previous order and said the Delhi High Court had allowed DIAL to continue to levy charges applicable in the first control period (2009-2014) and had directed the airports regulatory authority tribunal (AERAAT) to hear the case and provide its verdict in a timebound manner.In its 8 December order, AERA also said there shall be no user development fee (UDF) charged on arriving passengers, both for domestic and international.UDF is a fee levied to recoup investments on the completed infrastructure works at the airport.Responding to the development, a DIAL spokesperson said: “DIAL has appealed to AERAAT on issues related to tariff for first control period which has bearing on determination of tariff for second control period. Accordingly, Hon’ble High Court has directed that the existing tariff shall continue till disposal of appeal of DIAL by AERAAT. Hence, the current order of AERA cannot be implemented until final outcome of appeal.”