Airfares at Delhi & Mumbai Airports May Rise Sharply as User Fee Increase Looms
A recent tribunal ruling has the potential to push User Development Fees at India's two busiest airports to unprecedented levels, which could raise domestic and international fares considerably
Why flight tickets may get costlier
The decision of the Telecom Disputes Settlement and Appellate Tribunal has rewritten the way in which airport charges were calculated from 2009 to 2014. The tribunal computed that Delhi and Mumbai airports recovered a fraction of the amount due to them during the five-year period, which caused a shortfall of almost ₹50,000 crore. As a way to bridge this gap, the authorities have suggested a steep hike in the User Development Fee charged to passengers.
Travelers can thus expect a sharp increase in airfare if these revised fees are approved. The UDF for domestic passengers can surge from ₹129 to ₹1,261 at Delhi airport, while that of international flyers could surge from ₹650 to ₹6,356. Similarly, domestic passengers may have to pay ₹3,856 as against ₹175 at Mumbai airport, while international travelers may end up paying ₹13,495 as against ₹615.
The proposal has attracted sharp criticism. AERA, Indian carriers and several global airlines — including Lufthansa, Air France and Gulf Air — have moved the Supreme Court, seeking to set aside the tribunal’s order. They say such a steep hike will affect passengers and upset the aviation sector.
The revised UDF, if implemented, would substantially hike the flight cost for millions traveling through Delhi and Mumbai, two of India’s busiest aviation hubs. Airlines could immediately pass on the additional cost to customers; this might slow passenger growth and affect travel demand.
The effect, for now, remains uncertain as the matter heads to the Supreme Court. The aviation industry and travellers are awaiting clarity on whether these steep fee hikes will ultimately be enforced.
