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Flying from Delhi or Mumbai? Get ready to pay more
02 Dec 2025

Travelers flying from Delhi and Mumbai may soon have to pay more for their flights.

The increase comes after a protracted legal battle, with airport operators claiming over ₹50,000 crore in under-recovered charges dating back over a decade.

The dispute centers on the Airports Economic Regulatory Authority's (AERA) tariff-setting methodology for the 2009-2014 period.

AERA's tariff-setting methodology under scrutiny
Methodology debate

The AERA sets airport charges every five years, but only considers core aeronautical assets such as runways and terminals.

However, airport operators GMR Group for Delhi and GVK Group for Mumbai during that period, argued that revenue-generating non-aeronautical assets like lounges, car parks and duty-free shops should also be included in the valuation.

The recent Telecom Disputes Settlement and Appellate Tribunal (TDSAT) order has favored this wider interpretation.

Tribunal's ruling could lead to significant fare hikes
Impact on fares

The tribunal's ruling could lead to a massive increase in airport user charges, by as much as 22 times.

This would mean that airports would have to recover over ₹50,000 crore, with 60% from airlines and 40% from passengers.

If the decision is upheld, domestic fees at Delhi Airport could surge from ₹129 to ₹1,261 and international ones from ₹650 to ₹6,356.

Airlines and AERA challenge tribunal's decision
Legal challenge

The AERA and airlines such as Lufthansa and Air France are challenging this decision in the Supreme Court, with a hearing scheduled for December 3.

The proposed recovery would be through increased User Development Fees (UDF) charged to passengers, along with higher landing and parking charges on airlines.

This could lead to higher airfares and potentially slow down future passenger growth.

Concerns over asset valuation and fare recovery
Valuation concerns

The tribunal's ruling has also raised new questions about how airport assets are valued after privatization.

As per The New Indian Express, the ₹50,000 crore amount, if approved for recovery, would not lead to an immediate and drastic increase.

Instead, it shall be implemented over a period of 10 years with 60% recovered from airlines and 40% from passengers.