The Delhi International Airport Ltd (DIAL), which runs Delhi airport, has informed the aviation ministry that charges at Delhi airport are among the lowest in the world.
“Based on a study conducted on aeronautical charges in 2018, across global 50 airports by M/s Leign Fisher, a UK based consultant, DIAL’s charges are the lowest among the 50 airports examined. Airport charges form a relatively small percentage (5-7%) of total costs of private Indian airlines, as evident from their published reports,” reads a missive by DIAL CEO Videh Kumar Jaipuriar to the aviation secretary.
The airport operator further adds that ‘comparative calculation for an Airbus 320 across four Indian airports substantiates that DIAL is amongst the lowest charging airports in the region considering set of comparable airports.’
The move to inform the government about low airport charges is being seen as an attempt to counter the criticism of high charges at private airports – a constant complain of airlines.
The letter also states that the aeronautical charges for DIAL witnessed a significant drop in from July 2017 – primarily after charges for the new control period kicked in. Charges at Delhi airport are decided by the Airport Economic Regulatory Authority (AERA), which decided it for a period of five years called control period.
“Parking and housing charges have dropped by 71%; landing charges reduced by 58% and 38% in international and domestic category, respectively; Fuel throughput charges dropped by 27%,” read the letter.
Industry insiders, however, say that these charges will further go up as DIAL plans to invest money in the new terminal and fourth runway at Delhi airport.
“After the investment of over Rs 12,000 crore in the new terminal at Delhi, charges had gone up by over 300%… They have come down now and will further increase as DIAL is going to invest over Rs 10,000 crore in the new terminal and runway. So, this lower charges is only for the short-term,” said an airline insider, who did not want to be identified.