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At Delhi's IGI Airport, business class, peak-hour flyers may have to pay higher charges. Here's why
Airport operators levy user development fee to recover the expenses they incur while upgrading the infrastructures at airports.
The Delhi Airport has proposed to impose higher charges on business class and peak-hour flyers which, if approved by the Centre, will be the first time that India will have a variable tariff structure at an airport.
The tariff document filed by the GMR Group-owned airport said an international passenger travelling in business class will have to pay ₹570 as User Development Fee (UDF) from April 2025, double the amount an economy or premium economy passenger will pay, which is ₹280, The Economic Times reported.
The document is filed with the Airport Economic Regulatory Authority (AERA). Notably, operators levy UDF to recover the expenses they incur while upgrading the infrastructures at airports.
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Similar to international flyers, domestic passengers who will travel during the peak hours are likely to be charged a higher landing and park fee in comparison to those taking flights beyond these hours.
The two peak-hour windows as defined by the Delhi Airport are: 5 am - 8:55 am and 5 pm - 8:55 pm.
AERA is a body that fixes a target for airport revenues for five years on the basis of several parameters, including operating costs, depreciation, non-aero revenues, taxes and fixes charges that help airport operators raise this revenue.
According to ET, the people familiar with the development said that this changed model will prevent charges from rapidly increasing at the airport, which handles around 20 per cent of the nation's total air traffic.
What is the current UDF at Delhi
The UDF charges are increasing at the airport as around ₹12,900 crore was invested in the expansion of Terminal 1, a new 2.4 km elevated taxiway, upgrade of road infrastructure and transfer facilities at the airport.
"The airport wants to spread out the charges so that the impact on a price conscious economy passenger is lesser than someone who travels in business class. This will help drive additional passengers as aircraft with premium configurations carry less passengers," ET quoted a person involved in the process.
Amid the congestion impact on airports' operating efficiency, higher peak-hour charges will encourage airlines to run more flights during the non-peak hours.
