Additional charge for air travellers in Delhi, Mumbai soonJanuary 20th, 2009 - 10:28 pm ICT by IANS
New Delhi, Jan 20 (IANS) Airfares are all set to go up once again as the government is close to working out the airport development fee (ADF) charges - an additional fee for outgoing passengers - at Delhi and Mumbai airports, a government official said Tuesday.”The ADF charges are being worked out and should be in place by early next month,” a senior official of the civil aviation ministry said.
The government’s move to allow Delhi and Mumbai to levy ADF on passengers for two years to bridge the gap in capital due to fall in passenger numbers and poor response to their real estate projects. Both Delhi and Mumbai airport have reported deficits of about Rs.2,000 crore (Rs.20 billion).
The Delhi airport developer, Delhi International Airport Ltd (DIAL), has sought Rs.300 and Rs.1,000 as ADF from outgoing domestic and international passengers, respectively.
Delhi and Mumbai airports handle at least 55 percent of flights and passenger load in India. The modernisation of these two airports is expected to cost Rs.11,400 crore (Rs.114 billion).
The ADF is levied to part fund an upcoming project unlike the User Development Fee (UDF), which is charged after a new airport is ready.
According to civil aviation minister Praful Patel, the ADF arrangement will be charged for about two years, and then discontinued.
The government last week allowed Bangalore International Airport Ltd (BIAL) to charge UDF of Rs.260 from Jan 16.
Domestic passengers already pay Rs.375 to fly out of Hyderabad’s new international airport while international passengers at both these places have been paying a UDF of Rs.1,000 ever since it came into being early last year.
The official further said more airports could be allowed to charge UDF or ADF from passengers, but no formal talks have taken place in this regard so far.