As Delhi and Mumbai airports propose to raise tax, air travellers may end up paying more
As Delhi and Mumbai airports propose to raise tax, air travellers may end up paying more
Air travel may become costlier as the country's two busiest airport operators have sought permission from the government to increase airport charges by 10 per cent. 
The Delhi International Airport Limited (DIAL) and Mumbai International Airport Limited (MIAL) have sought permission from the government to levy ten per cent extra airport charges on airlines.
These charges are levied by the operators for navigational, taxiing and parking services of aircraft at the airports. For example for a Kingfisher Delhi-Mumbai flight, the charges at both the airport would cost around
Rs 50,000 to 60,000. The charge also depends on the size of the aircraft.u00a0
Besides, reduction in jet fuel prices, domestic airlines have been demanding decrease in airport charges.
Delhi International Airport spokesperson, Arun Arora confirmed the development: "DIAL has sought permission from the government to increase the charges by ten per cent."
Sources in the aviation ministry said MIAL has also made a similar request.
Arora clarified that the demand for increase in airport charges is not "sudden".
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Earlier this year, both these airports were allowed by the government to charge an airport development fee of Rs 200 from domestic passengers and Rs 1,300 from international flyers at New Delhi. Also, Rs 100 and Rs 600 from local and international passengers at Mumbai respectively.
Turbulence
Operating costs would go further up for airlines as the Directorate General of Civil Aviation (DGCA) has asked domestic and international airlines to abolish fuel surcharge and include it in the base fare.
Now the three per cent commission that the airlines paid to travel agents on base fare would include the fuel component as well. Currently, airlines list fuel costs under the 'YQ', or tax category, which is excluded from the three per cent commission paid to travel agents on base fares.
Jet fuel prices, which account for 35 to 40 per cent of an airline's operations costs, increased 10.5 per cent in the April to June quarter from the preceding three months. Airlines have used the fuel surcharge as a common measure to increase ticket prices corresponding with increasing jet fuel prices.
The Other Side
The DIAL has sought permission from the government to increase the charges by 10 per cent. The said increase is part of the agreement signed between the airport operator and government when the airport was privatised
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