Delhi Airport: Flying during peak hours may soon cost more
India’s most frequent airport, Delhi Airport, is considering a new variable-rate structure that is based on class of travel and timing, according to the Economic Times has revealed. The changes that are proposed are expected to take effective in April, aim to reduce costs and encouraging travel off-peak.
Delhi Airport: Flying during peak hours may soon cost more
International business class passengers will pay more
The document describing the tariffs submitted the Airport Economic Regulatory Authority (AERA) by GMR Group, which owns Delhi Airport, reveals a proposed increase in User Development Fee (UDF) for international business class travelers.
Beginning in April 2025, they will be charged Rs570 for UDF almost twice the amount currently charged of Rs280 for economy and premium economy travellers.
UDF is a term used to describe the UDF is a fee that airport operators impose to recover costs incurred by infrastructure upgrades.
What are the peak times?
This proposed structure will result in higher parking and landing costs for domestic flight passengers during peak hours.
Delhi Airport has identified two high-traffic times: 5-8:55am, and 5-8:55pm.
If you're traveling outside of these hours you may qualify for a reduced cost.
This plan aims to force airlines to run more flights in off-peak hours or even offering cheaper fares to passengers.
Variable tariff structure is designed to limit the rate of increase
The AERA establishes a five-year revenue goal for the airport that is based on operating expenses and depreciation as well as non-aero earnings and taxes, among others.
Variable tariffs are a part of Delhi Airport's plan to achieve this goal without substantially raising prices.
A source inside the airport explained "The airport wants to spread out the charges so that the impact on a price conscious economy passenger is lesser than someone who travels in business class."
Delhi airport is planning a fees for landings for narrow-body aircraft
Alongside the passenger-related fees, Delhi Airport has also suggested an increase in the fees for landings on narrow-body aircraft like Airbus A320. Airbus A320.
The proposed fee would rise by Rs187.88 per metric tonne to Rs300 per metric tonne.
This plan will be part of the airport's bigger strategy to manage its revenue and operational expenses efficiently.
