Delhi airport operator DIAL proposes varying fees for economy, business class passengers

New Delhi: Delhi airport operator DIAL has proposed different user fees for economy and business class passengers as well as for peak and off peak hours.

The Indira Gandhi International Airport (IGIA) is operated by the Delhi International Airport Ltd (DIAL), a consortium led by the GMR Group.

In its tariff proposal for the fourth control period starting from April 1, 2024 to March 31, 2029, loss-making DIAL has proposed varying User Development Fee (UDF) for economy and business class passengers of international flights.

For international embarking economy class passengers, the UDF proposed varies from Rs 430 to Rs 810 and for business class fliers, the amount ranges from Rs 860 to Rs 1,620.

The UDF mooted is Rs 810 for each economy class passenger for the first two years -- 2025-26 and 2026-27 -- and then Rs 430 for 2027-28 and 2028-29, as per the proposal submitted to the Airport Economic Regulatory Authority (AERA).

For international disembarking economy class passengers, the fee proposed is Rs 280 per person for the first two years and Rs 150 for the last two years of the 2025-2029 control period.

In the case of disembarking business class passengers, the UDF suggested is Rs 570 per person for 2025-26 and 2026-27, and Rs 300 per person for 2027-28 and 2028-29.

Besides, DIAL has sought to levy different UDF from domestic embarking and disembarking passengers for off peak hours and peak hours.

For domestic embarking fliers, the fee proposed ranges from Rs 315 to 610 per person during peak hours, according to DIAL.

With respect to domestic disembarking passengers, the fee proposed is in the range of Rs 115-210 per person during peak hours.

Generally, the timings of 0500 hours to 0855 hours and 1700 to 2055 hours are the peak hours at the airport.

When contacted, a DIAL spokesperson on Tuesday said the tariff proposal will be discussed in the upcoming stakeholders' meeting as part of the regulatory process.

In a letter to AERA earlier this month, DIAL said it is expected to record a loss of more than Rs 1,500 crore in the current financial year.

"Considering the allowed target revenue in the next four years, the average aero revenue per pax is coming to Rs 370 out of which, it is Rs 346 for the financial year 2025-26 and Rs 360 for the financial year 2026-27.

"Based on this aero revenue per pax with the expected traffic, DIAL will incur losses in these two financial years," DIAL said in a letter to AERA earlier this month.

With the losses, DIAL said it will have issues with credit rating and it will be difficult to raise any further debt to meet the repayment obligation falling due in October 2026.

"To overcome this challenge and to ensure the economic viability we earnestly request authority within the permitted target revenue in the next four years of CP4 (fourth control period) please allow aeronautical revenue per pax of Rs 450/- in the FY 2025-26 and the same amount in the FY 2026-27 and balance amount can be given in the subsequent two financial years," the letter said.