Delhi airport implements reduced development fee

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Delhi International Airport Ltd (DIAL) has reduced the development fee charged on departing passengers following a protracted debate over fees at the airport.

The operator of New Delhi's Indira Gandhi International Airport sought to increase a number of fees at the airport by up to 740% last year, but was forced to accept a much smaller increase after the proposal was knocked back by the Airports Economic Regulatory Authority (AERA).

That led to the Indian civil aviation minister directing the Airports Authority of India (AAI) to inject more equity into the two airport operators, with the aim of removing development fees from the start of 2013.

However, on 28 December, the AERA issued an order permitting DIAL to levy the development fees to Indian rupees (Rs) 100 ($1.84) on domestic passengers and Rs600 on international passengers from 1 January 2013 to April 2016. It previously charged Rs200 and Rs1,300 for domestic and international passengers respectively.

A two-year extension to the time period will ensure that there is no impact on the total revenue that will be collected from the fee, and that it will not affect the expansion and modernisation of the airport, says DIAL.

DIAL is 54% owned by private Indian conglomerate GMR Group, 26% by AAI, while Malaysia Airport Holdings and Fraport both hold 10% stakes respectively.