Tuesday, December 15, 2015

Delhi flights to get cheaper as govt plans to slash User Development Fee

Call this an early Christmas gift for those flying in and out of Delhi. Fliers will now pay a lot less for air tickets with the government ordering a flat rate for User Development Fee (UDF) in both international and domestic flights.
According to Airports Economic Regulatory Authority of India (AERA), from next year, domestic passengers will pay Rs 10 UDF and international passengers will pay Rs 45. The government has also ordered that there shall be no UDF charged to passengers arriving in Delhi, both domestic and international.
However, the implementation of new charges is in abeyance till disposal of appeal in previous tariff order. All airlines collect UDF from passengers and hand it over to the airport operator. "With regards to implementation of this order, the authority notes that the high court has permitted DIAL to charge the tariff applicable for the first control period till AERAAT decides on the appeals filed by DIAL and the high court has indicated a timeframe for Airports Economic Regulatory Authority Appellate Tribunal (AERAAT) to dispose the appeals.
The authority has appealed against this order of high court and depending upon the outcome of the legal process, the date of implementation of this tariff order will be decided," AERA said in its order. According to AERA, the new charges will be applicable from January 2016 to March 2019 once the appeal gets disposed by AERAAT. "The authority has determined an X factor of +96.08 per cent as on the date of implementation of 01 January 2016 for the tariff order. However, based on the interim measure to help DIAL meet its estimated cash deficit of Rs 404.88 crore, the authority has decided to allow the X factor of +89.40 per cent to DIAL.
15/12/15 Ankur Sharma/Business Standard
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