Delhi Airport operator GMR appeals tariff cuts

Delhi International Airport Ltd, or DIAL, a company of the GMR Group, which operates New Delhi’s Indira Gandhi International Airport, has appealed to the Airports Economic Regulatory Authority Appellate (AERA) Tribunal asking its regulator to put on hold the determination of user charges for the five-year period starting 1 April 2014.


Delhi Airport operator GMR appeals tariff cuts


Delhi International Airport Ltd, or DIAL, a company of the GMR Group, which operates New Delhi’s Indira Gandhi International Airport, has appealed to the Airports Economic Regulatory Authority Appellate (AERA) Tribunal asking its regulator to put on hold the determination of user charges for the five-year period starting 1 April 2014. The airport’s first five year term of fixed tariffs ends on 31 March 2014 and in its appeal it cites “unresolved financial issues including rate of return on equity and calculation of asset base.”

Union civil aviation minister Ajit Singh, in April, had said that the aeronautical charges of Delhi and several other airports would drop in the next two years along with the ADF (airport development fee paid by passengers) and UDF (user development fee).

AERA allowed Delhi airport to increase aeronautical charges by 346 per cent from 15 May 2012, lower than its demand for a 775 per cent hike, but even this was opposed by many airlines and the International Air Transport Association (IATA) said the charges would make Delhi airport the world’s most expensive.

Currently an airline has to pay INR 297,543 (US$4,832) for landing a B777 aircraft at Delhi airport, nearly 1.6 times higher than Hong Kong airport where the tariff is INR 186,769 and 3.5 times more expensive than Dubai at INR 85,023.