Airfare for passengers flying in and out of Delhi is set to become cheaper by up to ₹1,131 with immediate effect after the Centre ordered an 89.4% reduction in airport charges on Friday.
As per the new tariff structure, a User Development Fee (UDF) of only ₹10 and ₹45 will be levied on domestic and international passengers flying out of Delhi. There will be no UDF on passengers flying into the national Capital.
Currently, ₹245-₹490 is levied as UDF on departing passengers and ₹207-₹415 on arriving passengers on domestic flights.
International passengers departing from here are charged ₹565-₹1,131 and arriving passengers have to shell out ₹462-₹933.
The new airport charges are based on an order passed by the Airports Economic Regulatory Authority of India (AERAI) in December 2015 for 2014-19, which could not be implemented as the GMR Infrastructure-led DIAL had disputed the new tariff structure.
The slash in airport charges follows an order passed by the Supreme Court on July 3. The court, while hearing a petition by Air India, vacated an order passed by the Delhi High Court, which had put a stay on the fresh tariff.
Airport charges are fixed for five-year duration, known as the control period.
During the first control period (2009-14), the AERAI had allowed DIAL to hike airport charges by 346%. DIAL had demanded a 775% hike and had challenged the airport tariff in the AERAI appellate authority.
Meanwhile, the AERAI initiated the process of fixing charges for 2014-19. It extended the 346% hike, but clarified that an adjustment would be made for the coming five-year period.
DIAL had realised ₹188 crore in excess of its revenue target for 2014-19 as on April 1, 2014. Air India alleged that DIAL would have collected around ₹9,000 crore more by the end of 2019 if the old tariff continued.
The AERAI then passed an order for a 78% hike in January 2015 in the airport charges for 2014-19. However, DIAL moved the Delhi HC and managed to get a stay on the tariff order, which put a status quo on the airport charges till appeals were disposed against the tariff order cases pending in AERAI tribunal.
