Air Ticket Prices May Rise as TDSAT Order Allows Sharp Hike in Delhi, Mumbai Airport User Fees
Air ticket prices at Delhi and Mumbai airports are likely to increase, as user fees could increase by up to 22 times. This situation has arisen following an order by the TDSAT, which has resulted in outstanding dues of more than ₹50,000 crore to the airports. This decision has been challenged in the Supreme Court, which could impact the pockets of passengers.
Air ticket prices for Delhi and Mumbai airports are likely to go up. After an order by the Telecom Disputes Settlement and Appellate Tribunal, passengers using Delhi and Mumbai airports may have to pay a higher user fee than before.
According to a report, user fees could increase by up to 22 times. The increased user fees could also lead to an increase in air ticket prices at these two airports.
If the new user fees are implemented, the user development fee for international passengers flying from Mumbai will increase from the current ₹615 to ₹13,495. According to the report, the user development fee for domestic passengers at Delhi Airport could also increase from ₹129 to ₹1,261, and for international passengers, it could increase from ₹650 to ₹6,356. For domestic passengers at Mumbai Airport, it could increase from ₹175 to ₹3,856.
Want to get your story featured as above? click here!
Want to get your story featured as above? click here!
According to the report, the tribunal's order has revised the method of calculating tariffs for the five years from FY09 to FY14, creating a scenario where both airports now owe more than ₹50,000 crore due to under-recovery during this period.
This would be an outstanding amount from passenger fees, landing costs, and parking fees that might raise the fares of flight tickets, leading to a greater out-of-pocket expenditure by people.
According to reports, the TDSAT order has been challenged in the Supreme Court by the Airports Economic Regulatory Authority (AERA), domestic airlines, as well as foreign airlines like Lufthansa, Air France, and Gulf Air. The case will be heard by a bench of Justices Arvind Kumar and Nilay Vipinchandra Anjaria on Wednesday.
Note that the final decision lies with the Supreme Court. However, passengers at Delhi and Mumbai airports may have to shell out substantially higher ticket prices, if the proposed hike in user development fee is allowed to take effect.
