AERA keeps Delhi airport's domestic UDF unchanged, trims proposed hike in charges

New Delhi [India], March 28 (ANI) : The User Development Fee (UDF) for domestic passengers remain unchanged, said Airports Economic Regulatory Authority of India (AERA) on Friday.
However, Delhi International Airport Limited (DIAL), the Delhi airport operator has proposed had proposed a 730 percent increase in prevailing airport charges citing various reasons.
A tariff order copy accessed by ANI reads that the Airports Economic Regulatory Authority of India (AERA) has issued the Tariff Order for Indira Gandhi International Airport, Delhi, determining the tariff for aeronautical services for the Fourth Control Period (April 1, 2024- March 31, 2029).
The UDF for international passengers has been rationalised with a differential rate for economy and business class travelers. This adjustment aligns with the "User Pays" principle and reflects
the enhanced passenger experience and expanded facilities available and used by international travelers.
The landing and parking charges for the airlines have also been rationalized and kept at reasonable levels, considering competitive airport charges at similar airports. This ensures that airline operations are not unduly burdened and that operational efficiency is maintained.
The airport operator had proposed a 730 percen increase in prevailing airport charges. However, after conducting a thorough analysis and applying prudence checks to each regulatory building block, AERA has determined a significantly lower increase of 140 percent over the existing airport charges. This adjustment will enable the airport operator to meet essential capital expenditure requirements, maintain operational efficiency, and ensure
service quality in line with the standards outlined in the State Support Agreement (SSA) and the Operation, Management, and Development Agreement (OMDA).
AERA's decision to not change the prevailing UDF of Rs.129 for domestic air passengers which comprise 80 percent of the total air traffic of IGI Airport, Delhi underscores its commitment to protecting passenger interests ensuring affordability, and fostering growth in the domestic aviation sector. This treatment in conjunction with the tariff adjustments for international travelers and other aeronautical charges will support infrastructure
development in Indira Gandhi International Airport, Delhi and ensure the financial viability of the airport operator.
AERA remains dedicated to fostering a transparent, fair, and balanced regulatory environment for the aviation sector, promoting economic growth, and enhancing passenger expcrience across India's major airports.(ANI)