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Airports Authority of India appeals for high tariff, airlines protest

The IATA officials said in a press release that Delhi International Airport Limited (DIAL) and AAI had benefited from the hike approved by AERA in 2012 for the 1st Control Period.

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The airlines are up against a recent submission to the civil aviation ministry by Airports Authority of India (AAI), which states that reduction in aeronautical charges at the Delhi airport will lower its revenue and impact its development projects. AAI has requested the ministry to issue directive to Airports Economic Regulatory Authority (AERA), the aviation economic regulator, to ensure viability of Delhi airport project. Delhi and Mumbai airports have one of the highest aeronautical charges in the world, which eventually get passed on to passengers.

Earlier, while determining the tariff structure, AERA had allowed Delhi airport to hike aeronautical charges by 346% from May 2012, as against a demand for 775%. "It is unfortunate and disappointing that AAI has taken a very short-term view on the Delhi charges by contesting against the proposal of the independent regulator to reduce these inflated charges. Aviation should be seen as an economic enabler. A reduction in Delhi's charges from the huge increase of over 340% granted by AERA in 2012 would help to stimulate traffic growth at Delhi airport, which would in turn benefit not just the airport but also the Indian economy as a whole", Conrad Clifford, regional vice president, Asia Pacific, International Air Transport Association (IATA) said. Delhi airport officials refused to comment on the issue.

The IATA officials said in a press release that Delhi International Airport Limited (DIAL) and AAI had benefited from the hike approved by AERA in 2012 for the 1st Control Period. IATA said, "To keep the tariff at Delhi airport artificially high just to support the high revenue-share and high-tariff aspirations of AAI and DIAL respectively, would only come at the expense and the detriment of the interests of the Indian consumer and the airlines."

According to sources, the aeronautical charges for DIAL and Mumbai International Airport Limited (MIAL) were fixed till March 31.

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