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Flying in or out of Delhi will become expensive from May 15. Domestic passengers will have to pay Rs 290 more and international travellers double that.
This is because airlines will pass on all or most of the increased charges approved by the Airports Economic Regulatory Authority.
The AERA cleared a 346 per cent increase in airport charges. The airport charges airlines for the servicesit provides.
That's not all. For the first time, the Regulator has also approved the levy of development charges on arriving passengers.
According to the 280-page AERA order, “An increase of 345.92 per cent in airport charges, by Delhi International Airport Private Ltd (DIAL), has been approved.” These charges include those for landing, parking, counters, user development fee (UDF) and for fuel throughput.”
These charges reflect in the operational cost, and airlines collect them from passenger as part of the basic fare. UDF is levied above the basic fare and is paid directly by the passenger to the airport operator, though collected by airlines.
The order will be effective from May 15. A senior AERA official said though the order is effective for two years — 2012-13 and 2013-14 — the entire increase will be effected in one go this year itself. There is a grace period, up to July 1, 2012.
The final hike is almost half of what the airport operator had sought. DIAL had asked for a 774 per cent hike which was trimmed to 340 per cent by the airports regulator in its initial views. The implementation date suggested was April 1, 2012. Since the date has been advanced to May 15, the hike was increased marginally.
DIAL's response
Expressing disappointment over the increase, which was lower than its expectations, the airport operator in a statement said, “Approximate increase in ticket pricing on account of passenger fee per passenger, for the year 2012-13 works out to Rs 290 on an average for domestic and Rs 580 for international travel.”
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