Why might airport charges increase drastically in Delhi and Mumbai?

A TDSAT order redefined tariff calculations, leading to a potential ₹50,000 crore under-recovery that airports may collect through higher passenger fees.

Which airlines have challenged the TDSAT order on airport charges?

Lufthansa, Air France, and Gulf Air, along with domestic airlines and AERA, have challenged the TDSAT order in the Supreme Court.

What is the historical background of the airport tariff dispute?

The dispute dates back to airport privatization in 2006, concerning the valuation of aeronautical and non-aeronautical assets for tariff setting.

Home / Business and Economy / Airport Fees Skyrocket: Tickets Could Soar 22x

Airport Fees Skyrocket: Tickets Could Soar 22x

1 Dec

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Summary

Airport user charges may surge up to 22 times.
TDSAT order may increase passenger fees significantly.
Supreme Court to hear challenge against tribunal's order.

Airport Fees Skyrocket: Tickets Could Soar 22x

User charges at Delhi and Mumbai airports may see a staggering increase, with potential surges of up to 22 times following a Telecom Disputes Settlement and Appellate Tribunal (TDSAT) order. The tribunal redefined tariff calculation for the FY09-14 period, finding over ₹50,000 crore in under-recovery to be collected from passengers. This could translate to significant hikes in user development fees, making air travel considerably more expensive.

The Airports Economic Regulatory Authority (AERA), along with domestic and international airlines, has challenged the TDSAT order in the Supreme Court, arguing against the drastic increase in charges. Government officials have expressed concerns that such a sharp rise will adversely affect passenger growth and burden travelers caught in protracted legal battles.

The dispute originates from airport privatization in 2006, with disagreements over how to value assets, including non-aeronautical ones, for tariff setting. AERA's previous methodology was upheld, but TDSAT recently reversed its stance, favoring the airport operators. The Supreme Court is now set to hear the appeals, with the outcome poised to significantly influence airfare costs.