Passengers flying through Delhi and Mumbai may soon have to pay significantly higher airport charges, after a major ruling by the Telecom Disputes Settlement and Appellate Tribunal (TDSAT). The decision could lead to airport fees increasing by as much as 22 times in some cases. If implemented, this will make flight tickets costlier for millions of travellers passing through the two busiest airports in India.

Your ticket may get costlier

TDSAT has revised the way airport tariffs were calculated for the years 2009 to 2014. Because of this new formula, Delhi and Mumbai airports are now considered to be owed more than INR 50,000 crore that they could not recover earlier. To make up for this gap, airports are likely to raise the User Development Fee (UDF) paid by passengers, as well as landing and parking charges paid by airlines. These additional costs will ultimately be passed on to passengers, directly affecting ticket prices.

What will be the hike?

If the ruling takes effect, airport fees could rise sharply. At Delhi Airport, the domestic UDF may jump from INR 129 to INR 1,261, while international passengers may see an increase from INR 650 to INR 6,356. At Mumbai Airport, domestic flyers may face a hike from INR175 to INR 3,856, and international passengers could see fees rise from INR 615 to INR13,495. Such a steep increase means several thousand rupees could be added to the cost of a single journey.

Government officials have expressed worry that these steep fee hikes will slow down passenger growth and make flying less affordable. Since airports operate as natural monopolies, airlines will have no choice but to transfer these increased charges directly to passengers.

The issue originates from the first phase of airport privatisation in 2006. When the Delhi and Mumbai airports were handed over to private operators, accurate data on assets was not available, so a temporary formula called the Hypothetical Regulatory Asset Base (HRAB) was used. When AERA later set tariffs for 2009–2014, it included only aeronautical assets, such as runways and terminals. However, the airport operators argued that non-aeronautical assets like duty-free shops and parking areas should also be counted. After years of back-and-forth decisions, TDSAT recently reversed its earlier position and agreed with the operators, saying the exclusion of these assets resulted in under-recovery of over INR 50,000 crore.

The Airports Economic Regulatory Authority (AERA), Indian airlines, and several major international carriers have challenged the TDSAT ruling before the Supreme Court. A bench of Justices Aravind Kumar and Nilay Vipinchandra Anjaria is hearing the matter. Until the Supreme Court delivers its judgment, there is uncertainty over whether the new charges will actually be implemented. However, the possibility of higher passenger fees remains high.

Passengers raising concerns

Concerns over rising airport fees have been repeatedly raised in Parliament. A recent parliamentary committee questioned the aviation ministry on why charges have increased sharply since private operators took over the airports. Passengers worry that higher fees will increase ticket prices, affect family travel plans, and make frequent flying more difficult. Many fear that both domestic and international travel may become significantly more expensive if these hikes are approved.

If the Supreme Court upholds the TDSAT ruling, airport user fees at Delhi and Mumbai will increase sharply, affecting both domestic and international travellers. Airlines are expected to adjust their pricing to cover the higher operating costs, making fares more expensive. Until the final verdict is delivered, passengers will have to wait and watch, but the likelihood of higher fees has already created anxiety among travellers planning their journeys.