A proposed tariff hike at Delhi's Indira Gandhi International Airport (IGIA) is expected to lead to a 1.5 to 2 per cent increase in domestic airfares for passengers, according to a senior official. Delhi International Airport Ltd (DIAL), which manages the airport, has put forward different user fees for economy and business class passengers, as well as for peak and off-peak hours.
The airport, which has an annual passenger handling capacity of approximately 109 million, is planning to raise its Yield Per Passenger (YPP) to Rs 370 once the tariff hikes are approved, up from the current Rs 145. YPP includes charges from both airlines and passengers. The proposed increase represents a significant 140 per cent rise from 2006, when DIAL, a consortium led by the GMR Group, took over the airport.
With the proposed tariff hikes, DIAL CEO Videh Kumar Jaipuriar stated that domestic airfares will see an average increase of 1.5-2 per cent, while international fares will rise by less than 1 per cent. Consultations are ongoing regarding the tariff proposal submitted to the Airport Economic Regulatory Authority (AERA), covering the period from April 1, 2024, to March 31, 2029.
"Out of Rs 370, as suggested by AERA, about 30 per cent should be towards airline charges and 70 per cent towards passenger charges... now, it is 68 per cent airline charges and 32 per cent passenger charges," Jaipuriar said at a media briefing, reported PTI.
Currently, the User Development Fee (UDF) stands at around Rs 77 per passenger. DIAL is also working on upgrading the facilities at Indira Gandhi International Airport, which consists of three terminals—T1, T2, and T3—and handles approximately 1,300 flights daily.
As part of the upgrades, Terminal 2 (T2) will be shut down for four to five months starting likely in April, and the Instrument Landing System (ILS) on one of the runways will be upgraded to support landings in low-visibility conditions. During this period, the affected runway will not be operational. Prior to the T2 shutdown, the renovated section of Terminal 1 (T1) will be made operational. Additionally, one section of Terminal 3 (T3) will be converted to accommodate international operations, according to Jaipuriar.
"We have not shied away from investments and in improving passenger experience," he said.
Since assuming control of the airport in 2006, DIAL has invested Rs 30,000 crore, with Rs 25,000 crore contributed as part of revenue sharing to the Airports Authority of India (AAI). Additionally, a dividend of Rs 192 crore has been paid during this period, Jaipuriar highlighted. As of December 2024, DIAL's accumulated loss stands at approximately Rs 2,900 crore.