Key Points:
- International Travel Costs Rising: Delhi Airport’s User Development Fee (UDF) for international passengers will increase starting April 16, 2025.
- Domestic UDF Unchanged: Domestic passengers will continue paying ₹129 for departures and ₹56 for arrivals.
- Differential UDF Rates: Economy class international passengers will pay ₹650 (departure) and ₹275 (arrival), while business class passengers will pay ₹810 and ₹345, respectively.
- Impact on Airlines: Landing charges will vary for wide-body and narrow-body aircraft across domestic and international flights.
- Fee Hike Justification: AERA limited DIAL’s proposed 730% hike to 140% to fund airport improvements and maintain service quality.
New Delhi: Delhi’s Indira Gandhi International Airport (IGIA) is gearing up for a significant revision in its User Development Fee (UDF) structure, impacting international travelers. Starting April 16, 2025, international passengers departing or arriving at Delhi Airport will face increased charges, while domestic travel costs remain unchanged.
No Change for Domestic Flyers
The Airports Economic Regulatory Authority (AERA) has decided to keep the UDF rates steady for domestic passengers. Currently, domestic travelers pay ₹129 for departures and ₹56 for arrivals, which constitutes 80% of the airport’s traffic. This decision ensures minimal disruption for the majority of passengers.
New UDF Rates for International Passengers
Under the revised structure:
- Economy class passengers will pay ₹650 upon departure and ₹275 upon arrival.
- Business class passengers will face higher fees of ₹810 for departure and ₹345 for arrival.
These differentiated rates align with the “user-pay” principle, as business class travelers receive premium services.
Impact on Airlines
The fee hike extends beyond passengers. Airlines operating at IGIA will encounter revised landing charges based on aircraft type wide-body or narrow-body and flight category (domestic or international). This adjustment aims to ensure competitive pricing without burdening airline operations.
AERA’s Decision on Fee Hike
Delhi International Airport Limited (DIAL) had initially proposed a steep 730% hike in airport charges. However, AERA capped the increase at 140%, citing the need to balance financial viability with affordability. The additional revenue is expected to support capital expenditures, enhance operational quality, and improve passenger services.
Why Different UDF Rates?
AERA clarified that the differential rates for economy and business class passengers reflect the varying levels of amenities provided. Business class passengers enjoy superior facilities, justifying higher fees.
How Will This Affect Airfares?
While the fee hikes may sound significant, DIAL projects only a marginal impact on airfares less than 1% for international flights and around 2% for domestic flights. Airport charges constitute a small fraction of ticket costs, ensuring affordability remains intact despite the changes.
The revised UDF structure is part of DIAL’s broader strategy to sustain operations amid mounting debt and support infrastructure expansion. With these changes, Delhi Airport aims to maintain its position as a premier aviation hub while meeting growing passenger demands.
