What is the story about?
Delhi/Mumbai: Passengers flying out of India’s busiest airports, Delhi and Mumbai, may soon face significantly higher charges, as operators push for a major
revision in User Development Fees (UDFs). The move follows a favourable ruling from the Telecom Disputes Settlement Appellate Tribunal (TDSAT), which allows airport authorities to recover a wider range of infrastructure costs from travellers, including investments in hotels, shopping complexes and other non-aeronautical facilities within the airport premises. The proposed tariff structure, if implemented, could raise the cost of flying from these airports by as much as Rs 3,000, sparking concern among passengers and aviation analysts. Check IndiGo Live Updates Here
What’s Driving the Fee Hike?
According to industry reports, airport operators in Delhi and Mumbai argued before TDSAT that their regulatory asset base should include both aeronautical and non-aeronautical developments, allowing them to recover costs through UDFs charged to travellers, as per a Business Standard report.This ruling effectively expands what counts as airport “infrastructure”, giving operators greater scope to pass on costs to passengers. The decision also comes against the backdrop of heavy capital expenditure at both airports, where operators have invested in commercial real estate, hospitality and retail facilities.
How Much More Could Passengers Pay?
If the revised fee structure is implemented, the impact on fares could be substantial:- Delhi Airport:
Domestic UDF may rise from ₹129 to ₹1,261. - Mumbai Airport:
Domestic UDF could spike from ₹175 to ₹3,856, depending on the final tariff structure.
For international travellers, the potential increases could be far higher, particularly for premium-class passengers who already pay steep charges.
These hikes would come on top of increased landing and parking fees for airlines, which are also expected to be passed on to passengers through higher airfares.
Are Flyers Paying for Shopping Malls and Hotels?
One of the core debates centres on how airport regulatory assets are defined. The ruling means that large public-facing facilities, including hotels, shopping plazas and other real estate developments, can be counted as part of the airport’s asset base.
Critics argue that this effectively makes passengers pay for commercial projects that do not directly enhance flight operations. Opponents call the approach unfair, saying it blurs the line between essential airport expansion and private commercial ventures.
A Cloud Over Future Airport Investments
The controversy has also introduced uncertainty into India’s PPP (public-private partnership) airport projects. Investors reportedly remain wary of the lack of regulatory clarity over what costs can be recovered and how fees are determined.Industry sources warn that without predictable tariff frameworks, future airport development, including expansions under the government’s major infrastructure push, may face delays or reduced investment appetite.
