Delhi Airport Proposes Dynamic User Fees Amid Financial Struggles

Delhi Airport operator DIAL has suggested differing User Development Fees based on class and timing for international and domestic flights to combat financial losses. The proposal, targeting the 2024-2029 control period, seeks approval from AERA amid challenges in maintaining economic viability and credit ratings.

The Delhi International Airport Ltd (DIAL), operator of Indira Gandhi International Airport, has put forward a proposal to modify User Development Fees (UDF) based on passenger class and flight timings. This move aims to mitigate financial losses over the next control period from 2024 to 2029.

The proposed changes include varied UDF charges for international passengers, with economy class fees ranging from Rs 430 to Rs 810 and business class from Rs 860 to Rs 1620. For domestic flights, fees differ according to peak and off-peak hours. Peak hours are identified as 0500 to 0855 hours and 1700 to 2055 hours.

DIAL's proposal, facing a loss exceeding Rs 1,500 crore for the current financial year, hinges on discussions with the Airport Economic Regulatory Authority (AERA). The proposal seeks to align tariff adjustments with expected traffic to address economic challenges and maintain viable credit ratings.