Airfares are set to fall with a slashing of user development fees (UDF) along with an almost halving of aircraft landing and parking fees.
Aviation regulator Directorate General of Civil Aviation (DGCA) in an order has cut down UDF for passengers on both domestic and international flights originating in Delhi with immediate effect. Passengers will be charged only Rs 10 as UDF for domestic flights such as Delhi-Mumbai from as much as Rs 578 earlier. For a Delhi-New York international flight, this will drop from as much as Rs 1,335 per ticket to Rs 45, DGCA said in its order, which has been reviewed by Mint.
Following the DGCA order only those departing from Delhi airport will have to pay the fee, which was earlier paid by arriving passengers as well. A Delhi-Mumbai flight for the next fortnight is currently selling for a base price of Rs 2,100. This could be cut to Rs 1,600 if airlines pass on the benefits to consumers.
Implementing the new tariffs was delayed for a few years because the Delhi airport operator had sought legal intervention against proposed tariff revisions. Air India challenged this in the Supreme Court, which on 3 July vacated a stay granted by the Delhi High Court, allowing the revised tariffs to kick in.
Delhi airport earns about Rs 350 crore every month from these airport charges currently.
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