Delhi Airport: Flying during peak hours may soon cost more
What's the story
India's busiest aviation hub, Delhi Airport, is mulling a new variable tariff structure according to travel class and time, the Economic Times has reported. The proposed changes, which will come into effect in April, are aimed at managing charges better and encouraging off-peak travel. This will be the first time an Indian airport adopts such a pricing model, subject to government approval.
Fee hike
International business class passengers to pay more
The tariff document submitted to Airport Economic Regulatory Authority (AERA) by GMR Group, which owns Delhi Airport, reveals a proposed increase in User Development Fee (UDF) for international business class passengers. From April 2025, they could be charged ₹570 as UDF, nearly double the current fee of ₹280 for economy or premium economy travelers. The UDF is a charge imposed by airport operators to recoup costs incurred from infrastructure improvements.
Peak pricing
What are the peak hours?
The proposed tariff structure also entails higher landing and parking fees for domestic flyers during peak hours. Delhi Airport has identified two peak periods: 5-8:55am and 5-8:55pm. If you are flying outside these hours, you could be in for reduced charges. This strategy aims to prompt airlines to operate more flights during off-peak times, perhaps offering lower fares to passengers.
Revenue management
Variable tariff structure aims to prevent exponential charge increase
The AERA sets a five-year revenue target for the airport based on operating costs, depreciation, non-aero revenues, taxes, etc. The proposed variable tariff structure is part of Delhi Airport's strategy to meet this target without significantly raising charges. An insider explained, "The airport wants to spread out the charges so that the impact on a price conscious economy passenger is lesser than someone who travels in business class."
Fee proposal
Delhi airport proposes landing fee hike for narrow-body aircraft
Along with passenger-related charges, Delhi Airport has also proposed an increase in landing fee for narrow-body aircraft such as the Airbus A320. The proposed fee would increase from ₹187.88 per metric ton to ₹300 per metric ton. This proposal is part of the airport's larger strategy to control its revenue and operational costs efficiently.