Flying out of Delhi’s Indira Gandhi International Airport (IGIA) will become more expensive for international travelers starting April 16, as the Airports Economic Regulatory Authority (AERA) has approved higher and variable user development fees (UDF) for economy and business class passengers.
Recognising that domestic travelers make up 80% of IGIA’s total traffic, AERA has decided to keep the UDF for domestic passengers unchanged at Rs 129 for the fourth control period. Currently, UDF charges remain uniform for both domestic and international travellers. However, with the revised tariff structure, international passengers will now pay significantly higher fees depending on their class of travel.
Under the new fee structure, international economy class passengers will be required to pay Rs 650 for departure and Rs 275 for arrival. For business class travelers, the UDF will be Rs 810 for embarking and Rs 345 for disembarking. In contrast, the domestic UDF remains Rs 129 for departing passengers and Rs 56 for those arriving.
Additionally, landing charges will now vary based on aircraft type, with different rates applied to wide-body and narrow-body planes for both domestic and international segments. These changes are part of an effort to balance airport operations, improve infrastructure, and ensure cost efficiency.
AERA also addressed concerns regarding the significant increase in airport charges. The Delhi International Airport (Dial), which operates IGIA, had proposed a 730% hike in prevailing charges. However, after thorough analysis and regulatory scrutiny, AERA settled on a significantly lower increase of 140%. This adjustment is designed to help the airport operator meet essential capital expenditures, maintain operational efficiency, and uphold service quality in compliance with agreements such as the state support agreement (SSA) and the operation, management, and development agreement (OMDA).
AERA justified the differential UDF rates for international economy and business class passengers by citing the ‘user pays’ principle. This approach reflects the premium services and expanded facilities available to business class travelers. Additionally, the authority emphasised that the revised landing and parking charges have been rationalised to remain competitive with similar international airports. The goal is to ensure that airline operations are not unduly burdened while maintaining operational efficiency.