New Delhi: The IGI Airport at New Delhi may become the world's most expensive airport soon. Reportedly, GMR Infrastructure Ltd, a consortium that runs New Delhi's international airport, has permitted a hike in airport charges.
Earlier on Wednesday, GMR, which received a regulatory approval to raise the airport charges from May 15, called the increase "inadequate" to cover its costs.
Air ticket prices for international flights operating from the airport would rise by an average of s 580, while domestic fares would increase by an average Rs 290, reports said.
The revised charges would push up the landing and parking fee for aircraft, apart from raising the user development fee, GMR said, a move that may discourage foreign airlines to operate to and from the Indian capital.
The move may also hurt demand from cost-conscious Indians, who are already battling high inflation and have the option of travelling by much cheaper trains.
"India's aviation industry is already sick. This increase in Delhi's charges will put it in intensive care from a cost perspective," Albert Tjoeng, assistant director of corporate communications at International Air Transport Association (IATA) said in a statement.
The Airports Authority of India, Germany's Fraport and Malaysia Airports Holdings Bhd are GMR's consortium partners for the airport.
With Agency Inputs