AERA proposes to reduce Delhi airport charges by 78 percent
AERA has proposed a 78.4 percent reduction in airport charges at the Delhi Airport from February 1
New Delhi: The Airports Economic Regulatory Authority (AERA) has proposed a 78.4 percent reduction in airport charges at the Indira Gandhi International Airport, applicable from 1 February, according to a consultation paper circulated by the tariff regulator.
AERA, however, said the implementation of the proposal will be done once the Delhi International Airport Ltd (DIAL) submits fresh rate slabs for its approval.
DIAL is a joint venture between the Airports Authority of India (AAI) and GMR group with 26 percent and 74 percent holding, respectively.
"The Authority notes that DIAL has proposed an X factor of negative 42.6 percent in its revised submission...whereas the Authority has worked out an X factor of +78.24 percent. Accordingly, the Authority finds that the existing aeronautical tariffs at IGI Airport, Delhi, will need to be reduced by such an extent," the paper said.
The Authority shall pass an order in the matter only after considering the submissions of the stakeholders as per the provisions of the AERA Act, it said.
The tariffs for Delhi Airport were last revised in 2012 when AERA allowed DIAL to hike charges by 346 percent as against 775 percent sought by the private operator.
The proposal, when actually implemented, will come as a big relief to the flyers, who currently may have to shell out up to Rs 550 for domestic journeys and up to Rs 1,270 for international flights towards airport charges, which include landing and parking charges and a user-development fee.
The International Air Transport Association (IATA) has often termed Indian airports as being the "most expensive" ones.
Describing the reduction in charges as a "positive" move, IATA said it would be big relief to air travellers.
Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.
A draft policy on remote and regional connectivity has also been evolved, which would aim at granting various concessions and incentives to airlines to fly to such areas.
Even as the airline industry struggles for survival, another existential threat comes in the form of a steep increase in airport charges
Raju also focused on tapping the advertisement potential to generate more revenue for the airport and recommended a review of the maintenance and advertisement contracts.