Govt cuts fares for passengers flying in and out of Delhi

While the UDF for passengers arriving in Delhi has been removed, for those departing Delhi for a domestic destination, the levy has been cut to a flat Rs 10, against Rs 207-490, excluding taxes, earlier.

By: ENS Economic Bureau | New Delhi | Updated: July 9, 2017 1:32 am
Airports Economic Regulatory Authority of India, user development fee, domestic fee, Flight cost, indian express, India news, Delhi flight, flight cost UDF, the amount of which differs from airport to airports, is levied as a measure to bridge any revenue shortfall, allowing an airport operator to get a fair rate of return on investment.

The government has enforced the 2015 order of the Airports Economic Regulatory Authority of India (AERA), which proposed reducing the user development fee (UDF) on domestic and international flights from Delhi’s IGI airport significantly, resulting in lower fares for passengers flying in and out of the capital.

While the UDF for passengers arriving in Delhi has been removed, for those departing Delhi for a domestic destination, the levy has been cut to a flat Rs 10, against Rs 207-490, excluding taxes, earlier. Similarly, for international flights, passengers will have to pay Rs 45, against Rs 462-1131 earlier, depending on the flight distance.

UDF, the amount of which differs from airport to airports, is levied as a measure to bridge any revenue shortfall, allowing an airport operator to get a fair rate of return on investment. Before the enforcement of the aforementioned order, Delhi airport was the only one in India where UDF was levied on arriving passengers.

AERA had ordered the steep reduction in UDF back in December 2015 but its implementation was pending after the operator Delhi International Airport Ltd had approached the Delhi HC against the slashing of charges.

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