Mumbai: While Civil Aviation Minister Ajit Singh and some experts say abolition of the airport development fee (ADF) at the Delhi and Mumbai airports from January 2013 would lead to lower cost of travel, it might actually do the opposite.
Experts say the expected financing gap in the case of Mumbai International Airport Ltd (MIAL) will be Rs 4,200 crore and in the case of Delhi International Airport Ltd (DIAL) Rs 1,500 crore. Domestic passengers pay Rs 200 and Rs 100 as ADF at Delhi and Mumbai airports, respectively, and international passengers pay Rs 1,300 and Rs 600 a trip, respectively. Delhi also levies a user development fee (UDF) of between Rs 190 and Rs 450 on domestic passengers and Rs 400-1,000 on international travellers.
Sector experts say in the absence of ADF, the UDF charges are likely to go up. The amount will be fixed by the Airports Economic Regulatory Authority.
A GMR Group (it runs DIAL) spokesperson earlier told Business Standard that raising funds in the next two to three months to compensate for the loss of ADF (that is, raising debt and debt/equity to fill the gap) would be difficult. Adding, the government's move will pose challenges for private investors in the project, too.
18/10/12 Neha Pandey Deoras/Business Standard
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Experts say the expected financing gap in the case of Mumbai International Airport Ltd (MIAL) will be Rs 4,200 crore and in the case of Delhi International Airport Ltd (DIAL) Rs 1,500 crore. Domestic passengers pay Rs 200 and Rs 100 as ADF at Delhi and Mumbai airports, respectively, and international passengers pay Rs 1,300 and Rs 600 a trip, respectively. Delhi also levies a user development fee (UDF) of between Rs 190 and Rs 450 on domestic passengers and Rs 400-1,000 on international travellers.
Sector experts say in the absence of ADF, the UDF charges are likely to go up. The amount will be fixed by the Airports Economic Regulatory Authority.
A GMR Group (it runs DIAL) spokesperson earlier told Business Standard that raising funds in the next two to three months to compensate for the loss of ADF (that is, raising debt and debt/equity to fill the gap) would be difficult. Adding, the government's move will pose challenges for private investors in the project, too.
18/10/12 Neha Pandey Deoras/Business Standard
