Thursday, January 05, 2017

IGI flyers continue to pay higher charges

Are passengers flying in and out of Delhi paying much more than they should? And will the extra charges collected by airlines from the passengers and paid to Indira Gandhi International Airport — a total of around Rs 9,450 crore in just over three years — ever be refunded to flyers? These questions have been raised by the Airports Economic Regulatory Authority (AERA) in a petition filed before the AERA Appellate Tribunal (AERAAT) over Delhi International Airport Pvt Ltd (DIAL) continuing to charge the higher charges pertaining to the first control period, or a stipulated five-year term, from April 1, 2009 to March 31, 2014.
AERA had lowered the airport's charges by a steep 96% for the second control period that came into force from April 1, 2014 and will go through to March 31, 2019. While this should have meant cheaper flights to and from Delhi, DIAL opposed the implementation of the lowering of charges at various legal forums and continued with the higher earlier rates. The case is yet to be decided.
A concerned AERA recently moved AERAAT, saying, "The appellant is charging aeronautical tariffs as per the first tariff order, which has higher tariff than the second tariff order. Under the second tariff order, the target revenue to be recovered by the appellant is Rs 7,709.61 crore (approximately) and the aeronautical tariff has been fixed on that basis. However, from April 1, 2014 to June 30, 2016, the appellant has already earned revenue of Rs 7,257.15 crore (approx) which is about 94.13% of the target revenue for the second control period."
05/01/17 Saurabh Sinha/The Times Of India
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