From parking to shops fare, everything will be expensive at these two airports!
If you travel from Delhi or Mumbai Airport, then soon your ticket price may increase. The reason is that now the charge of these two airports is going to increase the fees. The GMR company operates Delhi Airport, while Mumbai Airport is with Adani Group. Tribunal (TDSAT) has given a decision in favor of these two companies, which has allowed them to increase the charge at the airport.
How will the fare increase?
Till now only the charges were decided by considering only the income related to flights like landing fees, passenger service fees etc. But now the non-climb earnings at the airport like parking, advertisements and income from shops will also be added to it.
This means that the earnings of airport companies will be considered more, so that they will be able to increase the charge on the ticket. The cost of airline companies will increase and its burden can be poured on passengers.
What is the effect on tickets and airline?
According to the report of Kotak Institutional Equities, airport charge can increase by about 6% in the next 10 years. This will affect the earnings of airlines. For example, it can have about 3.4% impact on IndiGo’s total earnings. IndiGo’s total earning in FY25 was ₹ 80,803 crore.
Old dispute and now decision
Delhi and Mumbai Airports were assigned to private companies in 2006. In 2012-13, these companies challenged the rule of government regulator AERA in which non-objection income was not added. Companies argued that a single-color model should be applied, in which all types of earnings are added.
Now the tribunal has given a decision in favor of these companies. The Supreme Court has also joined this case. This means that now airport charge can increase.
Impact on stock market
After this decision, the shares of GMR Airports have seen a boom. Between July 1 and July 11, its stocks climbed around 5%, while Nifty50 declined. GMR’s FY25 has a total earning of ₹ 10,414 crore, while Adani Airports earned ₹ 10,224 crore.