Flying from Delhi or Mumbai? Get ready to pay more

Flying from Delhi or Mumbai? Get ready to pay more

Travelers flying from Delhi and Mumbai may soon have to pay more for their flights.

The increase comes after a protracted legal battle, with airport operators claiming over ₹50,000 crore in under-recovered charges dating back over a decade.

The dispute centers on the Airports Economic Regulatory Authority's (AERA) tariff-setting methodology for the 2009-2014 period.

AERA's tariff-setting methodology under scrutiny

The AERA sets airport charges every five years, but only considers core aeronautical assets such as runways and terminals.

However, airport operators GMR Group for Delhi and GVK Group for Mumbai during that period, argued that revenue-generating non-aeronautical assets like lounges, car parks and duty-free shops should also be included in the valuation.

The recent Telecom Disputes Settlement and Appellate Tribunal (TDSAT) order has favored this wider interpretation.

Tribunal's ruling could lead to significant fare hikes

The tribunal's ruling could lead to a massive increase in airport user charges, by as much as 22 times.

This would mean that airports would have to recover over ₹50,000 crore, with 60% from airlines and 40% from passengers.

If the decision is upheld, domestic fees at Delhi Airport could surge from ₹129 to ₹1,261 and international ones from ₹650 to ₹6,356.