NEW DELHI: Flying out of airports in Mumbai and Delhi could get costlier for the public if the plan by its private operators to hike the User Development Fee (UDF) is approved. The Airports Economic Regulatory Authority (AERA), as well as domestic and foreign airlines are opposing the hike, and the matter is set to come up for hearing in the Supreme Court on December 3.
The fee could get doubled for the flyers as it would get recovered over two five-year control periods and will not be hiked multiple times as is being widely misunderstood, said sources aware of the development.
AERA fixes the tariffs that can be charged by airports every five years. The UDF charged presently by the Delhi airport for domestic passengers is Rs 129 and the departure fee for international passengers (economy) is Rs 650 while it is Rs 810 for international business class. Mumbai airport charges Rs 175 for domestic flyers and Rs 615 for international passengers.
Though the Delhi airport had hiked its UDF in April this year, this new development is on account of the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) ruling that the airport operators could recover Rs 50,000 crore due to it from 2009-2014. The GMR Group operates the Delhi airport while the GVK group (now Adani) operated Mumbai airport during the period.
The issue is because AERA had taken only the value of aeronautical assets such as runways, terminals into account when fixing the tariff for the period while the airport operators feel that lounges, car parking and duty free shops (non-aeronautical assests) also need to be taken into account.
"The Tribunal ruling itself had stated that 60% could be recovered from the airlines and 40% from the passengers. If the operators get a verdict in their favour, this would be implemented over a period of ten years and not instantly as is being misinterpreted," said a source familiar with the developments. “The UDF would only double over a period of time,” he stressed.