India Added Extra Charge for Air Traveler
One of the government officials India recently announced airfares are all set to increase once again as the authority is close to working out the airport development fee (ADF) charges (an additional fee for outgoing passengers) at Delhi and Mumbai airports. On the other hand, a senior representative of the civil aviation ministry said, “The ADF charges are being worked out and should be in place by early next month.”
Indian government is going to allow Delhi and Mumbai to levy ADF on all passengers for two years to bridge the gap in capital as a result of plunge in passenger numbers and poor response to their real estate sector. Delhi and Mumbai airports handle no less than 55% of flights and passenger load in India. However, both airport have reported deficits of about Rs.2,000 crore (Rs.20 billion). According to decision, the Delhi airport developer, Delhi International Airport Ltd (DIAL), has sought Rs.300 and Rs.1,000 as ADF from outgoing domestic and international passengers, respectively. The modernization of those two airports is expected to cost Rs.11,400 crore (Rs.114 billion). Civil aviation minister Praful Patel said the ADF arrangement will be charged for roughly two years, and then discontinued.
The ADF is levied to part fund an upcoming project unlike the User Development Fee (UDF), which is charged after a new airport is ready. Last week the management allowed Bangalore International Airport Ltd (BIAL) to charge UDF of Rs.260 from16 Jan 2009. On the other hand, already domestic passengers pay Rs.375 to fly out of Hyderabad’s new international airport whereas international passengers at both these places have been paying a UDF of Rs.1,000. Some official sources said more airports could be allowed to charge UDF or ADF from passengers but they did not disclose that name.