Flying in and out of Delhi airport to cost less
SC asks regulator to proceed with decision on slashing user fee and parking charges
Flying to and from Delhi will get cheaper, with the Supreme Court (SC) allowing a slashing of fees for flyers and parking charges for airlines. The apex court has quashed the Delhi high court’s (HC’s) stay order in this regard, on an earlier decision of the Airports Economic Regulatory Authority (AERA).
The latter had cut the User Development Fee (UDF) levied on domestic and international passengers at Delhi airport to ~10 and ~45, respectively. Also, arriving passengers were to no longer be charged any fee.
At present, Delhi International Airport Ltd (DIAL) levies ~275-550 as UDF on each departing passenger and ~233-466 on each arriving one, on domestic flights. Those departing on international flights are charged ~635-1,270 and arriving passengers pay ~518-1,048. This includes a service tax component.
AERA’s order for Delhi covered the 2014-19 period. Implementation was delayed as DIAL is in a legal battle with airlines regarding this.
State-owned Air India challenged this in the SC, which on Monday removed a Delhi HC stay, allowing the revised rates.
GMR Infra holds majority stake in the consortium that runs the airport. It said in an exchange filing that it would pursue the matter with an appellate tribunal.
“DIAL would engage constructively with the regulator to endeavour a balanced implementation and will work expeditiously with the appellate tribunal to reach a fair and positive outcome in the two months directed by the SC,” it said. Overall, the charges on passengers and airlines have been reduced by 89.4 per cent. These include levies on landing and parking of aircraft, common use terminal equipment charges, UDF and fuel throughput charges.
DIAL had in fact sought a 42 per cent increase in rates, over and above the 346 per cent rise granted to it by the regulator for the 2009-14 period. AERA rejected the plea and initially ordered a 96 per cent reduction.
DIAL pleaded these would make airport operations unviable, lead to a downgrade in credit ratings and default on loan payments. AERA then modified its decision.