Airlines challenge Delhi airport tariff hike

July 3rd, 2012 - 8:39 pm ICT by IANS  

New Delhi, July 3 (IANS) The Federation of Indian Airlines (FIA) Tuesday moved the Delhi High Court seeking a stay on the nod to the Delhi International Airport Ltd. (DIAL) to increase threefold the aeronautical tariff collected from the carriers.

The FIA, an airline industry body, alleged that the April 24 order passed by the Airport Economic Regulatory Authority (AERA) allowed an unlawful escalation of 345 percent in aeronautical charges without following basic norms of regulated sectors.

“Some airlines may not be able to survive and would be under serious financial stress,” the FIA said in the petition.

Justice Rajiv Shakdher asked the FIA to furnish a list of airlines which had paid the amount of aeronautical tariff and those opposed to paying it.

The court would next hear the case July 5. It asked the government to inform it about the status of the case pending before the Competition Appellate Tribunal.

The AERA hiked the airport charges, including landing, parking, and housing charges, user development fee and fuel throughput charges, from May 15.

In its petition, the FIA said: “The decision will make it very difficult for airlines to recover such high tariff.”

The FIA submitted that the increase of 345 percent in aeronautical tariff will not be limited to the airport operations but also impact the economy.

“It will make IGI airport as the most expensive airport in the world,” FIA claimed.

The federation added that the escalation of tariff will lead to decline in demand of Delhi airport, fall in tourist arrival and adverse impact on trade and tourism.

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