Further price hikes at Indian airports

DELHI International Airport (DIAL) is to raise its fees by ten per cent. In a move that mimics Mumbai Airport’s (MIAL) recent price hike DIAL has sought and gained permission from the regulator Airports Authority of India (AAI) to increase its aircraft landing, parking and route navigation charges.

These charges are regulated by the AAI and any increases require its authority. The two airport consortiums signed an operations management development agreement (OMDA) in 2006 where they would b e allowed to increase their fees only after two years of successfully completed modernisation programmes.

Last year MIAL successfully completed its side of the development bargain and was duly given permission for the recent price rises but the AAI ruled that DIAL had not. DIAL has denied being responsible for any delays, instead putting the blame on various government departments which were slowing in giving their permissions to projects.

AAI is now considering DIAL’s appeal and there is a strong chance that it will give its permission despite the delays.