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GMR gets nod to hike charges at Delhi airport

Air ticket prices for international flights operating from the Delhi airport will increase by an average of Rs 580

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Reuters New Delhi
Last Updated : Jan 20 2013 | 3:24 AM IST

GMR Infrastructure, which operates the New Delhi airport, said it received regulatory approval to raise aeronautical charges at the airport, helping the company stem some of its losses.

GMR has long lobbied for a hike in the charges, saying it was unable to cover its costs. The company said on Wednesday the tariff hike, effective from May 15, was "inadequate."

GMR Group leads the consortium that operates Delhi International Airport Ltd. The other partners are the Airports Authority of India, Germany's Fraport and Malaysia Airports Holdings Bhd.

Air ticket prices for international flights operating from the Delhi airport will increase by an average of Rs 580 after the hike in charges, while domestic fares will rise by an average of Rs 290, GMR said in a statement.

The revised charges will also result in a hike in landing and parking fee for aircraft, apart from the higher user development fee, GMR said, a move that may discourage foreign airlines to operate to and from the Indian capital.

It may also hurt demand from cost-conscious Indians, who are already battling high inflation and have the option of travelling by much cheaper trains.

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First Published: Apr 25 2012 | 7:31 PM IST

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