Delhi to Be World's Most Expensive Airport

Bangalore: The New Delhi airport will become the world’s most expensive, with its operator GMR Infrastructure Ltd permitted to raise charges, troubling the airport’s objective to become an aviation hub, as per an airline industry body.

GMR, which received a regulatory approval to raise the airport charges from May 15, said the increase was “inadequate” to cover its costs.

Air travel cost from Delhi is set to go up soon with airports regulator AERA today deciding to raise airport charges by a whopping 346% for two years, as airlines said the passengers would have to face the brunt of this massive hike.

The approximate increase in ticket pricing on account of passenger fee alone would be around Rs 290 in the domestic sector and Rs 580 in the international sector. The ticket prices can go up further depending on to what extent the airlines pass on the additional burden on them due to various charges to the passenger.

Terming the move as "extremely disappointing", the International Air Transport Association (IATA) said the increase in airport charges would "make Delhi the world's most expensive airport." In its order fixing landing, parking and other tariff for Delhi's IGI Airport, the Airports Economic Regulatory Authority (AERA) hiked the charges by 345.92% for 2012-13, which would be effective from May 15.

This one-time hike is however less than half of the 774% hike sought by GMR-led joint venture Delhi International Airport Limited (DIAL), which welcomed the decision but said the raise was "inadequate" and "much below our expectations".

The AERA also introduced higher rates of user development fees (UDF) for both domestic and international passengers this year, with the rates going up further from April next year. This is the first time that even incoming passengers are being included in the ambit of UDF. The UDF rates applicable for 2012-13 would go up considerably in 2013-14.

The order also covers the charges to be levied on airlines and other airport users for uplift of fuel and using the Common User Terminals or CUTE. Reacting to the development, officials of Indian and foreign carriers, some of whom requested anonymity, said the move would burden the passengers flying out of IGI Airport and discourage foreign airlines from operating in Delhi.

(With inputs from agencies)