IGIA Passenger Fee Increases to Have Minimal Material Impact

New Delhi: The increase in passenger usage charge at the Indira Gandhi International Airport (IGIA) from December 1, 2018 will not have any material impact on the air fares or passenger traffic, industry experts said on Thursday. “The hike in charges is only around two per cent of the average fare on the Mumbai-Delhi route. Thus, it will not have any material impact on the fares or the passenger traffic,” Kinjal Kirit Shah, VP, Corporate Sector Ratings, ICRA told IANS. According to Aloke Bajapi, CEO and Co-founder, ixigo: “The increase in UDF (User Development Fee) for flights from Indira Gandhi International Airport is nominal and will have minimal effect on domestic and international air fares.” “Growth in capacity and airlines announcing winter sales for upcoming holiday season, will curb any further increase in prices.”

As per an order dated November 19 by Airports Economic Regulatory Authority (AERA), the Delhi International Airport Limited (DIAL), the firm which manages and operates the facility will be able to charge a passenger service fee at the rate of Rs 77 per departing passenger. However, for passengers who have booked a ticket in foreign currency, the fee will be charged at $1.93. (IANS)