Get ready to shell out more to fly in or out of Delhi.

Airport charges are likely to go up soon, with the Airport Economic Regulatory Authority (AERA) set to issue an order on revision of charges for Delhi airport.

The airport is operated by Delhi International Airport Ltd (DIAL), which is a part of the GMR group. DIAL had pitched for a nearly 800 per cent increase in charges.

However, AERA is likely to approve a less than 400 per cent increase in charges. This may moderate the anticipated impact on ticket prices for end-consumers.

A person familiar with the development said, “If the airport charges are raised by 370 per cent, the yield per domestic passenger will go up from Rs 101 to Rs 399. Similarly for international passengers, the yield will go from Rs 278 to Rs 1,120.” This calculation is based on the estimated number of passengers in Delhi Airport in 2012-13. (See table)

Per passenger yield refers to the revenue the airport receives from airlines, which in turn collect the charges from passengers. “When you talk about higher yield, it means the airlines will have to pay more and that they will charge more from the passenger. So higher estimate of yield could translate into increase in airfare,” he added.

Going by the fares published on its Web site on April 7, Jet Airways' one way economy special fare between Delhi and Mumbai on April 15 is Rs 7,721. With the increased fee, this fare may become Rs 8,019, a rise of 3.85 per cent.

However, for international passengers, the percentage increase is less as base fares are higher. For instance, Jet Airways' fare for a one way flight to Brussels (on April 15) may rise from Rs 49,262 to Rs 50,382 (increase of 1.70 per cent).

Consultation paper

AERA floated a consultation paper last year for determining aeronautical charges for Delhi Airport. DIAL demanded close to 800 per cent increase, while AERA suggested a 340 per cent. Various airlines and air travel bodies such as IATA opposed DIAL's demand.

The consultation process is almost completed and AERA is set to issue its final order.

The 340 per cent increase was suggested when the date of implementation was proposed as April 1, 2012. Now, it is believed that date of implementation may be mid June, which is why there is talk of an increase of 370 per cent.

Meanwhile, DIAL sources said that if AERA increases the charges by 370 per cent, it would be below their expectations, especially in view of the mandate in the concession agreement for a “reasonable return” on investment and the huge capex incurred. Airport charges have not been revised for the last 10 years, except for a 10 per cent hike in 2010.

Shishir.s@thehindu.co.in

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