AERA rejects GMR demand for 7-fold hike in airport charges

New Delhi: Rejecting GMR-led Delhi airport's proposal for a seven-fold increase in airport charges, sector regulator AERA has suggested only a three-fold rise in these tariffs in a recent consultation paper, causing disappointment to the loss-making private developer.
GMR-led consortium Delhi International Airport Ltd (DIAL) had asked the regulator for a 774% increase airport charges, which are levied for aircraft landing and parking, ground safety and handling services for passengers and cargo, and fuel supply for aircraft.
But the Airport Economic Regulatory Authority has proposed only a 280% hike in the charges. This difference could translate into a possible revenue loss of almost Rs 3,000 crore to DIAL from 2009-10 to 2013-14. The tariff increase would be effected from April this year for two years. Tariffs have not been hiked for 10 years.
AERA's stance has caused much heartburn to the DIAL management. "It's a disappointing consultation paper. We were eligible for a tariff revision from 2009, when the AERA was not there. Now it is backdated by three years. Hence, a seven-fold increase," DIAL CEO I P Rao told ET.
05/01/12 Anindya Upadhyay/Economic Times

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Categories: airports Jan 2012