Higher tariffs will increase domestic airfares at Delhi airport by 1.5-2 pc, says DIAL

New Delhi, Feb 26 (PTI) The proposed tariff hike at the Delhi airport will result in a 1.5 to 2 per cent increase in domestic airfares for passengers, according to a top official.

The Delhi International Airport Ltd (DIAL), which is operating the Indira Gandhi International Airport (IGIA) in the national capital, has proposed different user fees for economy and business class passengers as well as for peak and off-peak hours.

The airport has an annual passenger handling capacity of around 109 million.

DIAL CEO Videh Kumar Jaipuriar on Wednesday said the Yield Per Passenger (YPP) will rise to Rs 370 once the higher tariffs are approved from the current level of Rs 145.

YPP includes airline and passenger charges. The proposed increase is around 140 per cent compared to the level of 2006, when DIAL, a consortium led by the GMR Group, had taken over the airport.

"Out of Rs 370, as suggested by AERA, about 30 per cent should be towards airline charges and 70 per cent towards passenger charges... now, it is 68 per cent airline charges and 32 per cent passenger charges," Jaipuriar said at a media briefing.

With the higher tariffs, he said the maximum increase on average on domestic fares will be 1.5-2 per cent and on international fares, it will be less than 1 per cent.

Consultations are going on with respect to the tariff proposal submitted to the Airport Economic Regulatory Authority (AERA). The proposal is for the period April 1, 2024, to March 31, 2029.

Currently, the User Development Fee (UDF) is around Rs 77 per passenger.

Listing out the YPP at various airports, Jaipuriar said the amount is Rs 478 at Bangalore, Rs 533 at Chennai and Rs 637 at Kolkata.

The YPP at Heathrow airport in London is Rs 3,100, at Schipol in Amsterdam Rs 1,507, Hong Kong Rs 946 and Paris Rs 1,770, among others, he said, adding that the figures will vary as per dollar rates.

At present, around 44 planes are grounded at the Delhi airport.

DIAL is working on upgrading the facilities at the airport, which has three terminals -- T1, T2 and T3 -- and handles around 1,300 flights daily.

T2 will be shut down for four to five months, starting likely in April and the Instrument Landing System (ILS) at one of the runways will be upgraded to make it capable of flight landings during low visibility conditions.

During the upgradation period coinciding with the T2 shutdown, the runway concerned will not be operational. Before temporarily shutting down T2, the renovated portion of T1 will be made operational.

According to Jaipuriar, one of the sections of T3 will be converted for international operations.

"We have not shied away from investments and in improving passenger experience," he said.

Since taking over the airport in 2006, DIAL has invested Rs 30,000 crore, and Rs 25,000 crore has been given as part of revenue sharing to the Airports Authority of India (AAI). A dividend of Rs 192 crore has been given during this period, Jaipuriar noted.

DIAL's accumulated loss is around Rs 2,900 crore till December 2024.

Association of Private Airport Operators (APAO) on Wednesday said the variable tariff model proposed by DIAL represents a well-balanced and globally recognised approach that promotes affordability while ensuring financial viability.

"Key features, such as class-based UDF and peak and off-peak pricing, allow for a fair and efficient pricing mechanism," it said in a statement.

Additionally, APAO said a balanced distribution of UDF between arriving and departing passengers ensures equitable cost-sharing. "Competitive landing and parking fees further support airlines by maintaining operational efficiency and cost-effectiveness." PTI RAM IAS BAL BAL

Source: PTI