New Delhi: The Delhi International Airport Pvt Ltd (DIAL) has told government that its aeronautical charges are among the lowest among major airports globally, seeking to dispel the notion that private airports are costlier than state-run ones. The operator of IGI Airport has quoted a study by UK-based consultant Leigh Fisher which says IGIA’s aero charges were lowest among 50 major ones last year. This list has London Heathrow, Frankfurt, Moscow-SVO, New York JFK and Newark-EWR as the five costliest airports last year, with Mumbai airport also being pricier than Delhi in that list.
“While (DIAL’s) aeronautical revenues have plummeted, also all airlines levy a convenience fee of Rs 150-750 on a per transaction basis depending on the flight (domestic or international) and (mode of payment) net banking or credit/debit card which further adds to their existing revenue,” says a letter sent by DIAL CEO Videh Kumar Jaipuriar to aviation secretary P S Kharola on May 31, 2019.
DIAL’s move comes as it now finally begins its hugely-delayed expansion work which includes a fourth runway, bigger terminal and an elevated taxiway — something that is likely to cost about Rs 9-11,000 crore. The airport operator is trying to raise funds for this expansion plan that is likely to, among other things, see a hike in user development fee — that passengers pay directly — and increased aero charges which are levied on airlines who in turn collected them from flyers in form of airfares.
“IGIA’s charges are lower at the moment because they are collecting the base rate allowed about a decade back. DIAL’s UDF was reduced in July 2017 as the airport operator has collected much more than what it was estimated to due to a sharp rise in number of flyers,” said a person in the know of DIAL finances.
“It is estimated that the amount of over recovery by DIAL would be about Rs 5,200 crore. This amount will need to be trued up and deducted/recovered from (future revenue requirement)..,” an Airports Economic Regulatory Authority (AERA) consultation paper on determining aeronautical tariffs for IGIA in 2017 had said.
22/07/19 Saurabh Sinha/Times of India
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“While (DIAL’s) aeronautical revenues have plummeted, also all airlines levy a convenience fee of Rs 150-750 on a per transaction basis depending on the flight (domestic or international) and (mode of payment) net banking or credit/debit card which further adds to their existing revenue,” says a letter sent by DIAL CEO Videh Kumar Jaipuriar to aviation secretary P S Kharola on May 31, 2019.
DIAL’s move comes as it now finally begins its hugely-delayed expansion work which includes a fourth runway, bigger terminal and an elevated taxiway — something that is likely to cost about Rs 9-11,000 crore. The airport operator is trying to raise funds for this expansion plan that is likely to, among other things, see a hike in user development fee — that passengers pay directly — and increased aero charges which are levied on airlines who in turn collected them from flyers in form of airfares.
“IGIA’s charges are lower at the moment because they are collecting the base rate allowed about a decade back. DIAL’s UDF was reduced in July 2017 as the airport operator has collected much more than what it was estimated to due to a sharp rise in number of flyers,” said a person in the know of DIAL finances.
“It is estimated that the amount of over recovery by DIAL would be about Rs 5,200 crore. This amount will need to be trued up and deducted/recovered from (future revenue requirement)..,” an Airports Economic Regulatory Authority (AERA) consultation paper on determining aeronautical tariffs for IGIA in 2017 had said.
22/07/19 Saurabh Sinha/Times of India
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