Delhi Airport Threatens Govt. for a Shut Down

Bangalore: The Delhi International Airport is facing a lot of trouble as the government delays to propose the hike in airport charges. The Airport Economic Regulatory Authority (AERA) had approved of the previous airport charges but they have not yet paid much attention to the new charges. It’s high time that the defaulting airline companies like Air India and Kingfisher should clear up their dues. Until the dues are cleared and the government approve of the charges, Delhi International Airport might probably have to shut down.

Sidharth Kapur, Chief Financial Officer, Delhi International Airport (DIAL), says AI has not only failed to pay the aeronautical charges but they have also not transferred the air development fees that they have been collecting from the passengers on behalf of the airport association. The government is aware of the misfortune but still no action has been taken to alter this situation. The action needs to be taken as soon as possible or else the DIAL will have to prepare to wind up. As the monthly loss incurred is almost 40crore.

If it continues this way then DIAL will suffer a loss of approximately 900-1000crore in the current financial year. Anyways it already has a long term debt of 5300crore and it pays interest at the rate of 10– 15 percent. AI claims that it can pay off its debts only after getting the equity infusion from the government. The passengers can expect to shell out more from their pockets if there is the delay in implementing the rise in charges.

The new regime, which demands the rise in charges, introduces a new thing called as User Development fees (UDF), which would be charged on an average of 1300-1400 to international passengers and 600 to domestic passengers. There will be a special charge of 800 for transiting passengers and 360 for international and domestic flyers respectively.

Sources said that AI has been the biggest problem, as they are unable to even pay the user charges, where as Kingfisher is paying 40 – 50lakh per day as user charges. DIAL has asked the government for an ad-hoc payment of 300crore. DIAL is hoping for some good luck as they are having a terrible time handling this situation, the banks have also refused to lend anymore money to it.