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MARCH 2025

Week 10

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Air India warns Delhi International Airport fee increases will hold back expansion

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March 7th 2025

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Air India has cautioned Delhi International Airport Ltd (DIAL) that its plan to significantly increase user development fees (UDF) and other aeronautical charges will hinder the airport’s goal of becoming a global hub, local media reports. Read More » In a written response to the Airports Economic Regulatory Authority of India (AERA), the flag carrier instead recommends reducing charges for wide-bodies to encourage the operation of larger aircraft on domestic routes. DIAL has proposed higher landing charges for domestic twin aisles, from 188 rupees (US$2.15) per metric tonne (MT) to 325 rupees per MT and increasing international wide-body landing charges from 250 rupees per MT to 430 rupees per MT. Additionally, DIAL intends to hike UDF for domestic and international passengers from between 100% to more than 1,000%. It also plans to introduce matching increases in landing and aircraft parking charges. The new fees and charges are scheduled to apply from next April until March 29, 2029. The flag carrier has counter-posed the AERA reduce landing charges for long-haul and ultra-long-haul flights by a minimum of 30% per MT and cut UDF by 20%.

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