GMR Group's subsidiary Delhi International Airport (DIAL) has received the go ahead from the regulator to significantly increase the User Development Fee (UDF) for the Delhi airport, as the operator aims to enhance infrastructure, as well as achieve a hub vision for the Delhi airport and encourage long haul flights.
GMR Airports said the regulator AERA has accepted its variable tariff plan for the Delhi airport, and the existing aeronautical tariff is being increased by around 148 per cent for the ongoing control period which ends on March 31, 2029. The User Development Fee (UDF) for domestic passengers remains unchanged at the existing rate of Rs 129 per departing domestic passenger, however, UDF for international passengers has been rationalized with a differential rate for economy and business class travellers, GMR Airports informed exchanges on March 30. The UDF for domestic passengers at IGI airport have been left unchanged as AERA favoured maintaining affordability for them. Domestic passengers disembarking at the Delhi airport pay Rs 56 as UDF, while those boarding a flight will continue to pay the Rs 129 charge.
For departing passengers on international flights, the UDF has risen from Rs 129 to Rs 650 for economy class (a 403% rise) and Rs 810 for business class (527% rise). Those arriving via an international flight into New Delhi will have to pay a new UDF which was previously not charged separately, at Rs 275 for economy class and Rs 345 for business class.
"Against the existing Yield Per Pax of ~ Rs. 145 valid under 03rd Control Period, the nominal Yield per Pax has been increased to Rs. 360 throughout the balance four years of Control Period valid till March 31, 2029..," a statement by GMR Airports said, adding that it will implement the order with effect from April 16, 2025.
"In order to achieve the Hub Vision of Delhi Airport and to encourage international long haul flights, the Landing charges for Wide body aircrafts for scheduled airline operators who will operate direct flight to new international destinations have been waived off," GMR Airports said.
The landing and parking charges for airlines too has been rationalized. keeping them competitive with airport charges at similar airports, GMR Airports said on the new tariff for Delhi's Indira Gandhi International Airport.
Read More: Airfares from Delhi airport may rise as GMR seeks higher charges
The Delhi Airport has been justifying the demand for higher UDF citing insufficient cashflows and the developmental cost. It is projecting a loss of Rs 1,794 crore in FY25.
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