Tuesday, April 26, 2011

No airport development fee for Delhi, Mumbai: SC

NEW DELHI Taking domestic and international flights from the Delhi and Mumbai airports is likely to get cheaper, with the Supreme Court on Tuesday striking down the airport development fee (ADF) being charged by private operators.
An apex court bench of Justice R V Raveendran and Justice A K Patnaik overruled the ADF, which had been challenged by NGO Consumer Online Foundation.
As a result, tickets are likely to become cheaper by Rs 200 for domestic travellers and Rs 1,300 for international passengers boarding from Delhi. Similarly, tickets from the Mumbai airport are also likely to become cheaper by Rs 100 for domestic and Rs 600 per international passenger. The apex court, through its judgment, struck down the verdict of the Delhi High Court which had rejected the NGO’s petition challenging the ADF being charged by the private operators of the international airports in these cities.
Till now, DIAL has collected Rs 1,199 crore in development fee till January 2011 from March 1, 2009. The government had approved the levy of development fee from March 1, 2009, for a period of 36 months, which would be used to bridge the funding gap of Rs 1,827 crore in the development of IGI airport.
The Airports Authority of India (AAI) gets 45.99 per cent of the gross revenue earned by DIAL. Interestingly, the fee is collected by all the airlines operating from Delhi and Mumbai from each departing domestic and international passenger. In turn, the airlines get a collection charge of Rs 5 per passenger. IANS

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