Air fares out of Delhi and Mumbai would become cheaper with the government today deciding to abolish airport development fee (ADF) at the two airports from January 1 and directing state-run Airports Authority of India (AAI) to infuse more equity in both the joint ventures.
Currently, the ADF is charged at the rate of Rs 200 per domestic and Rs 1,300 per international passenger at Delhi Airport and Rs 100 and Rs 600 respectively at Mumbai. Civil Aviation Minister Ajit Singh directed Mumbai International Airport Limited (MIAL) and Delhi International Airport Limited (DIAL) to abolish ADF at the two airports from January 1 next year and accordingly submit proposals to Airports Economic Regulatory Authority (AERA), an official spokesperson said.
The move came days after the Civil Aviation Ministry directed AAI not to pursue its proposal to levy ADF at Chennai and Kolkata Airports, which are being modernised now. While ADF is levied to meet cash flow requirements before completion of an airport upgrade project, UDF is charged for using the completed facility.
16/10/12 moneycontrol.com
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Currently, the ADF is charged at the rate of Rs 200 per domestic and Rs 1,300 per international passenger at Delhi Airport and Rs 100 and Rs 600 respectively at Mumbai. Civil Aviation Minister Ajit Singh directed Mumbai International Airport Limited (MIAL) and Delhi International Airport Limited (DIAL) to abolish ADF at the two airports from January 1 next year and accordingly submit proposals to Airports Economic Regulatory Authority (AERA), an official spokesperson said.
The move came days after the Civil Aviation Ministry directed AAI not to pursue its proposal to levy ADF at Chennai and Kolkata Airports, which are being modernised now. While ADF is levied to meet cash flow requirements before completion of an airport upgrade project, UDF is charged for using the completed facility.
16/10/12 moneycontrol.com
