The Indian Aviation Ministry has decided to abolish the airport development fee at the Delhi and Mumbai Airports from January 1, 2013 onward. The development can be a shocker for the airports’ developers GMR and GVK, but this might make air travel cheaper for travelers.
Civil Aviation Minister Ajit Singh said that the move can increase passenger growth and that the ‘government is trying to make air travel more affordable’. The Airport Authority of India (AAI) has been asked by the ministry to infuse more equity in both joint ventures. Singh said, “The ministry has asked AAI not to infuse cap, and remove ADF from Chennai, Kolkata”. Singh went on to speak about how the government has to now concentrate on passenger growth due to the high cost charge.
According to our reports, the aviation minister also said that the PPP was introduced as cap cost went up and AAI did not have money. It is learnt that now AAI has enough money for capital to be infused. Earlier, the ADF was charging Rs. 200 per passenger for domestic travel at Delhi and Rs. 1,300 for international travel. While in Mumbai, domestic passengers were charged Rs. 100 and international travelers were charged Rs. 1,300.
