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Flying in and out of Delhi set to get cheaper
Flying in and out of Delhi may get much cheaper by coming summer break. The Supreme Court has directed the long-standing legal tussle over Delhi International Airport Pvt Ltd (DIAL) levying 96% higher charges on airlines — which are passed on to flyers as overpriced fares — than prescribed by a government agency be resolved by April-end.
The Airports Economic Regulatory Authority (AERA) had in December 2015 slashed Delhi Airport charges by a steep 96% for the period April 1, 2014, to March 31, 2019 (second control period). While this should have meant a sharp drop in airline charges, and thereby significantly lower fares, DIAL continues charging the higher tariff that AERA had approved for April 1, 2009, to March 31, 2014 (first control period).
The Delhi Airport operator took legal recourse for not implementing the lower tariff order. AERA moved the AERA Appellate Tribunal (AERAAT) on this issue but the matter has been pending for a long time.
Air India on January 24, 2017, filed a special leave petition (SLP) in SC on DIAL’s alleged over-charging in the current period. AI took this move due to “delay” in AERAAT deciding on the case because of the tribunal’s “frequent disbandment and reconstitution”.
“DIAL has been unjustly enriched by Rs 7,257.15 crore approximately on account of revenue generated from tariff charges for the period starting from April 1, 2014, till June 30, 2016… DIAL is currently recovering Rs 300 crore (approximately) per month, and if it is permitted to continue doing so… then by the end of the second control period (March 2019), there would be a total collection of Rs 17,157.15 crore (approximately) as against target revenue of Rs 7,709.61 crore, straightaway leading to the excess collection of Rs 9,447.54 crore over and above target revenue,” Air India’s SLP says.
Echoing AERA fears, AI also says in its petition that “there are no means as to how excess revenue earned (by DIAL) could be refunded to the ultimate payer.” AERA estimates that due to DIAL charging the older, higher charges, passengers flying in and out of Delhi will pay about Rs 9,450 crore as extra charges in just over three years.
On February 23, 2017, a two-Judge bench of Supreme Court heard AI’s petition. The court then gave this order: “Having regard to the facts and circumstances of this case, we request the AERA Tribunal to take up the matter at an early date so as to dispose of the same within a period of two months from today. As prayed, list the matter in the last week of April 2017.”
DIAL did not comment on this development until the time of going to press. Its top officials had recently told TOI that the excess collection made in the second collection period can be recovered through “truing up mechanism”. Tom Rathman Jersey
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