The International Air Transport Association has criticised the Airports Authority of India for backing high user charges at the Delhi airport. The AAI holds a 26 per cent stake in Delhi International Airport Ltd and receives 46 per cent of the airport’s revenue.
The Airport Economic Regulatory Authority has proposed a 78 per cent reduction in landing, parking and other user charges in a consultation paper to determine tariffs for 2014-19. The consultation process is under way.
The Delhi airport levies Rs 275-550 as user development fee on passengers departing and Rs 233-466 on passengers arriving on domestic flights. Passengers on international flights are charged more.
In a recent submission to the aviation ministry the AAI said lower tariffs would reduce its revenue and affect development projects.
It has requested the ministry to issue a directive to the AERA to ensure viability of the Delhi airport. The AAI move has not gone down well with airlines.
“It is unfortunate the AAI has taken a short-term view on the Delhi charges by contesting the proposal of the independent regulator. A reduction in Delhi’s charges from the huge increase of over 340 per cent granted by the AERA in 2012 will stimulate traffic growth, which will benefit not just the airport but also the economy,” said Conrad Clifford, the IATA’s regional vice-president.
Keeping the airport tariff high was detrimental to the interests of Indian passengers and airlines, he added. The Federation of Indian Airlines said it was examining the AAI’s letter to the government.
The AAI’s revenue from Delhi airport has increased from Rs 705 crore in 2011-12 to Rs 1,800 crore in 2014-15.
“A downward revision of tariff will adversely affect the cash flow to the AAI. The reduced cash flow will have an adverse effect on various development works,” wrote the AAI’s member (finance), S Suresh, in a letter to the ministry.
