Flying from Delhi’s IGI airport could get costlier from 2019

The hike will come in the form of landing and parking charges and airport development fee, which the airlines are likely to pass it on to passengers.

Aeronautical charges at the Delhi airport is likely to increase from 2019 as the Delhi International Airport Limited (DIAL) is planning to invest ₹9,000 crore in next three years for proposed expansion work.

The hike in aeronautical charges at Delhi airport will come in the form of landing and parking charges and airport development fee, which the airlines are likely to pass it on to passengers. (Ravi Coudhary/HT file photo)

The hike will come in the form of landing and parking charges and airport development fee, which the airlines are likely to pass it on to passengers.

At present, the DIAL has approached the Airports Economic Regulatory Authority (AERA) as the second concession period is expiring.

At the end of the concession period, which is for five years, DIAL approaches the regulatory authority, giving details of financial closure, proposed investment and a demand for hike in tariffs. For the 2009-14 concession period, AERA had allowed around a 346% rise in aeronautical charges, whereas the hike was 94% for the 2014-2019 period, as no major infrastructure work was planned.

The AERA will decide the percentage hike after consulting airlines and other stakeholders.

“Of the total amount, a large portion has to be raised from outside. The government will also have to help facilitate raising funds for expansion,” said Videh Kumar Jaipuriar, CEO of DIAL.

Jaipuriar was speaking on the sidelines of the launch of a report on the economic impact of Delhi airport by National Council of Applied Economic Research (NCAER). The NCAER had also conducted a passenger survey, speaking to 3,500 passengers, and found that there are more women passengers in the age group of 26-35 years compared to male passengers in the same group.

The report also talks about how Delhi airport is helping in creating jobs even in agriculture and unorganized sectors. While it has created about 28 lakh direct, indirect and induced jobs, the number is likely to go up to 40 lakh by 2025. The report also points out that the Delhi airport contributes 0.70% to the national GVA in 2014-15 and 17.89% to the GSDP of Delhi in 2014-15. “The impact on value added after taking into account direct, indirect and induced effects will work out to be ₹2,40,356 crore by 2025-26 (equivalent to 0.60% of the estimated national GVA),” said Kanhaiya Singh, senior fellow at NCAER.

“Delhi airport is the most successful public-private partnership example at such a scale. The impossible task of developing one of the largest airports in the world in 37 months with state-of-the-art infrastructure is no less than a miracle,” said GM Rao, chairman of the GMR group.