UAE flights to Delhi to become expensive

All UAE flights to New Delhi are in for a steep fare hike following a 345 per cent increase in airport charges and a user development fee (UDF) that will be levied on all passengers by the Indian capital’s airport operator. Tour operators in Dubai and Sharjah said they are yet to receive an official intimation on the new slabs, but expect fares to go up as early as next month since the hiked airport charges will be effective from May 15. Current economy return fares from Dubai to Delhi range from Dh1,500 to Dh2,000 depending on the airline. The new airport charges were approved by the Airports Economic Regulatory Authority in India, which has also allowed GMR-backed DIAL, the airport operator in Delhi, to charge a UDF on all passengers. An Emirates Spokesperson told XPRESS: “Emirates is concerned by the proposed increase in airport changes at Delhi airport. We are currently in discussions with the relevant authority and have no further comment at this time.” An official of an Indian airline that operates from Dubai said: “Taxation in India is over the top. Already, 50-56 per cent of airline costs go into taxation and it can be assumed that any additional burden will be passed on to passengers.” “Nothing has come to us in black and white yet. But fares will definitely go up in May,” said an agent with a prominent travel agency in Sharjah. “The fares will vary from airline to airline,” said another Dubai-based agent. Speaking to XPRESS from Singapore on Thursday, the International Air Transport Association (IATA), which represents 240 airlines worldwide, said the new charges are “extremely disappointing” and will make Delhi the most expensive airport in the world. Albert Tjoeng, Assistant Director, Corporate Communications Asia Pacific, IATA, said in an e-mailed statement: “The increase in charges will have a larger impact on India and its economy with an expected five to eight per cent decrease in demand at Delhi, as a result of higher costs, a fall in tourist arrivals and further damage to local and international airline connectivity.” “This is a big step backwards for Delhi’s ambition to be an aviation hub,” he said. “The Ministry of Civil Aviation as the custodian of India’s aviation industry needs to intervene in order to moderate this steep increase being imposed on both the airlines and the passengers. The government needs to take into consideration the long-term development of Indian aviation at its hubs,” he noted. TJoeng said the proposed rate card is “unacceptable” as it violates the prescribed policy of cost-based charging by having different landing fees for international and domestic flights. “Charging UDF based on distance also violates this principle and in addition, distorts competition and creates a non-level playing field for carriers operating direct flights and carriers operating through an intermediate hub.” He said, “We welcome AERA's decision to simultaneously commission an independent study in the asset allocation practice adopted by Delhi airport, where currently 89.25 per cent of the assets are allocated towards aeronautical activities. We hope that this independent study will correct the allocation mix in the next control period.” Media reports in India quoted some officials as saying the “unfavourable cost structure” could result in several airlines cutting back their Delhi operations.