Delhi Airport Tariff Hike Proposed

Indira Gandhi International Airport (DIAL), operator of India — Indira Gandhi International Airport (IGIA), has proposed a significant tariff hike to the India — Airport Economic Regulatory Authority (AERA) for the period April 1, 2024, to March 31, 2029. The proposal aims to increase the Yield Per Passenger (YPP) from Rs 145 to Rs 370, a 140% rise from 2006 levels. This increase is expected to raise domestic airfares by 1.5-2% and international fares by less than 1%. DIAL, led by GMR Group, justifies the hike by citing ongoing infrastructure upgrades at India — Indira Gandhi International Airport, including the renovation of Terminal 1, the temporary shutdown of Terminal 2 for four to five months, and an upgrade to the Instrument Landing System on one runway. These investments, totaling Rs 30,000 crore since 2006, are intended to improve passenger experience and operational capabilities. Despite these investments and Rs 25,000 crore in revenue sharing to the India — Airports Authority of India, DIAL reported an accumulated loss of Rs 2,900 crore as of December 2024. The Association of Private Airport Operators (APAO) has expressed support for DIAL's variable tariff model, emphasizing its global recognition and benefits for financial sustainability.