GMR To Increase New Delhi Airport Charges

April 25, 2012

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GMR Infrastructure, which operates India's New Delhi airport, said it received regulatory approval to raise aeronautical charges at the airport, helping the company stem some of its losses.

GMR has long lobbied for an increase in the charges, saying it was unable to cover its costs. The company said on Wednesday the tariff increase, effective from May 15, was "inadequate."

GMR Group leads the consortium that operates Delhi International Airport. The other partners are the Airports Authority of India, Germany's Fraport and Malaysia Airports.

Ticket prices for international flights operating from Delhi airport will increase by an average of INR580 rupees (USD$11) after the increase, while domestic fares will rise by an average of INR290 rupees, GMR said in a statement.

The revised charges will also result in increased landing and parking fee for aircraft, apart from the higher user development fee, GMR said, a move that may discourage foreign airlines to operate to and from the Indian capital.

It may also hurt demand from cost-conscious Indians, who are already battling high inflation and have the option of using much cheaper trains.

(Reuters)