Flying from Mumbai airport set to get costlier

Regulator okays 154% hike in user charges

Mumbai, Jan. 16:  

Flying from Mumbai airport is set to become costlier from next month, adding to the woes of air travellers.

The Airport Economic Regulatory Authority (AERA) has approved 154 per cent rise in airport charges on Wednesday. The new tariff will come into effect from February 1.

After the hike, the GVK Power and Infrastructure Ltd-led Mumbai International Airport Ltd (MIAL) will be among the most expensive airports in the country to fly out of.

AERA has approved collection of user development fee (UDF) from passengers flying out of Mumbai. Initially, passengers will have to pay Rs 346 (domestic) and Rs 692 (international) as UDF from February 1 to March 31.

From April, passengers will be charged Rs 274 (domestic) and Rs 574 (international) as user development fee. The charges will be in effect for a year.

Charges on landing, parking, housing, aerobridges, fuel handling and unauthorised overstay by airlines have also been raised.

Fare impact

According to travel agents, this move will not only increase the fares but also impact demand.

“Fares are already higher by 20 per cent as compared to last year. Any further increase in fares will impact demand. Levying of the UDF will make it costlier by at least five per cent in the domestic routes,” said Noel Swain, Executive Vice-President (Supplier Relations), Cleartrip.

Traditionally, February and March are lean travel months. Travel agents say that fares during these two months are usually 10-15 per cent lower than the average fare. However, this year, there has been no relief in fares.

“The average fare during February and March is about Rs 4,500. The fares will go up for people flying out of Mumbai. People travelling in groups in particular will affected,” said Sanjay Bhasin, Managing Director, Goibibo.

http://www.thehindubusinessline.com/todays-paper/tp-economy/flying-from-mumbai-airport-set-to-get-costlier/article4313792.ece