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Airport charges at Delhi, Mumbai may go up

Press Trust of India
Oct 16, 2011 at 10:41am IST

New Delhi: A proposal for a big hike in landing, parking, navigation and other charges at the Delhi and Mumbai airports is being considered by the Airports Economic Regulatory Authority (AERA) and a decision is likely by early next year.

The AERA is seeking the views of airport users, including airlines, on the multi-year tariff proposals of Delhi International Airport Limited (DIAL) and Mumbai International Airport Limited (MIAL) to hike airport charges by 500-600 per cent, official sources said here.

If approved, flying out of the IGI airport would become costlier as the airlines, on whom this additional burden would be imposed, would onpass these costs to the passengers.

Airport charges at Delhi, Mumbai may go up

The Airports Economic Regulatory Authority (AERA) is seeking the views of airport users and airlines, on this.

A decision on the proposal to hike airport charges, which was made by DIAL and MIAL a few months ago, is likely to be taken by the AERA in another two-three months, they said.

The hike in airport charges has been overdue since 2001 but it would depend on the Civil Aviation Ministry's policies, AERA decision and the views of key stakeholders including the airlines and passenger associations, whose views were being sought, the sources said.

While airport charges like landing, parking and air navigation fees levied by the airport operators have not been revised since 2001, the GMR and GVK led airport operators also say that Supreme Court's directive not to collect development fee from passengers has also imposed a major financial burden.

The apex court has left it to the AERA to decide on the development fee issue also.

The GMR-led DIAL, in which Airports Authority of India has 26 per cent stake, has invested a total of Rs 12,718 crore so far to upgrade and modernise IGI Airport and is seeking a 24 per cent return on its equity.

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