Business
IATA welcomes move to cut airport charges at Delhi
New Delhi, Feb 5
The International Air
Transport Association (IATA) Thursday welcomed the airport regulator's
proposal to reduce tariff at the Indira Gandhi International Airport
(IGIA) by 78 percent.
The industry body of air transporters
described the proposal made by the regulator, Airport Economic
Regulatory Authority (AERA), in its consultation paper posted on its
website as a positive development.
"This is a positive
development. AERA's proposal of an X-factor of plus 78 percent will
translate into reduced charges at Delhi airport," said Conrad Clifford,
regional vice president, Asia Pacific, IATA.
"This will be a
welcome relief for airport users who have been impacted by the over 340
percent increase in airport charges since 2012," he added.
According
to Clifford, IATA is still waiting for the tariffs for the second
control period, which should have been determined 10 months ago.
"It
is important that the reduced charges be implemented promptly so that
airlines and passengers using Delhi airport will not be paying more than
they should in fees and charges," Clifford said.
In a
consultation paper on its website, AERA said it is proposing a 78.24
reduction in the aggregate revenue requirement (ARR) for the second
control period from 2014 to 2019.
AERA allows the Delhi
International Airport Limited (DIAL), the firm which operates and
maintains the IGIA, to levy charges on passengers and airlines to cover
the cost incurred on developing the airport infrastructure.
The
charges are determined for a duration of five years known as the control
period. The first such period ran from 2009 to 2014.
"In other
words, positive X factor implies a required reduction in aeronautical
tariff from the date considered for such implementation of tariff," the
350-page consulting paper read.
"Accordingly the Authority
proposes to bring the above X factor into effect in respect of
aeronautical tariffs at IGI Airport and expects DIAL (Delhi
International Airport Limited) to submit the tariff card addressing the
same."
Arriving and departing passengers have to pay a user
development fee (UDF), which is levied to finance mega infrastructure
projects like the IGI airport's Terminal-3 (T-3).
Airlines too
are subject to landing and parking charges. The proposed reduction in
tariff will reduce costs for both passengers and airlines using the
IGIA.
Currently, domestic passengers have to pay anywhere between
Rs.200 to Rs.500, while international passengers are levied charges
ranging from Rs.500 to Rs.1,200.
In 2012, the AERA had allowed DIAL to raise aeronautical charges by 346 percent.