Archive · 1 Dec 2025
AERA Challenges TDSAT Ruling on Airport Fees
There is a big argument about how much passengers should pay to use Delhi and Mumbai airports.
The Airports Economic Regulatory Authority (AERA) says the fees should not go up too much, but the companies that run the airports (DIAL and MIAL) say they should be able to charge more because they have spent a lot of money on things like shops and parking.
A court called TDSAT agreed with the airports, but AERA and the airlines are not happy and are taking the case to the Supreme Court.
If the airports win, passengers might have to pay a lot more to fly, which could make air travel more expensive.
The Supreme Court will decide on this issue soon.
AERA challenges TDSAT ruling that could lead to a 22x increase in passenger fees at Delhi and Mumbai airports.
Dispute centers on whether non-aeronautical assets should be included in HRAB calculations for tariff purposes.
TDSAT's ruling could impose a ₹50,000 crore financial burden on passengers through increased UDF and other fees.
Supreme Court to hear the case on December 3, 2025, with AERA, airlines, and airport operators presenting their arguments.
Potential fee increases: Domestic UDF in Delhi could rise from ₹129 to ₹1,261, and international UDF could reach ₹6,356.
- Who
- AERA, DIAL, MIAL, TDSAT, Supreme Court, Airlines (domestic and international)
- What
- Dispute over HRAB calculation method and potential fee increases for passengers
- When
- Dispute dates back to 2008-09 to 2013-14, Supreme Court to hear on December 3, 2025
- Where
- Delhi and Mumbai airports
- Why
- To determine aeronautical tariffs and user development fees (UDF) based on HRAB
AERA and Airlines
Airport Operators (DIAL and MIAL)
HRAB Calculation Method
AERA and Airlines
AERA's method includes only aeronautical assets in tariff calculations, preventing sharp increases in passenger fees.
Airport Operators (DIAL and MIAL)
DIAL and MIAL argue that non-aeronautical assets should also be included in tariff calculations.
Financial Impact
AERA and Airlines
AERA believes the TDSAT ruling could impose a ₹50,000 crore financial burden on passengers.
Airport Operators (DIAL and MIAL)
Airport operators claim they are owed ₹50,000 crore due to under-recovery and seek to recover this through increased fees.
Ministry of Civil Aviation's Role
AERA and Airlines
AERA and airlines argue that MoCA's 2011 letter does not indicate acceptance of TDSAT's interpretation.
Airport Operators (DIAL and MIAL)
DIAL and MIAL claim MoCA's inaction indicates acceptance of TDSAT's interpretation.
- HRAB
- Hypothetical Regulatory Asset Base
- AERA
- Airports Economic Regulatory Authority of India
- TDSAT
- Telecom Disputes Settlement and Appellate Tribunal
- DIAL
- Delhi International Airport Ltd
- MIAL
- Mumbai International Airport Ltd
- MoCA
- Ministry of Civil Aviation
- Supreme Court Hearing Date
- December 3, 2025
- Potential Financial Burden
- ₹50,000 crore
- Domestic UDF Increase (Delhi)
- ₹129 to ₹1,261
- International UDF Increase (Delhi)
- ₹650 to ₹6,356
- Domestic UDF Increase (Mumbai)
- ₹175 to ₹3,856
- International UDF Increase (Mumbai)
- ₹615 to ₹13,495
Sources
Civil Aviation Ministry to back AERA in HRAB dispute at Delhi, Mumbai airports
Massive User Fee Hike Likely At Delhi, Mumbai Airports; SC To Hear Challenge
Delhi, Mumbai airport passengers may face massive user fee hike; here’s what’s happening
Delhi, Mumbai airport passengers stare at 22 times costlier user fee – Will ticket prices rise too?
Attention flyers! Flight ticket costs to Delhi, Mumbai may increase 22x after this court order — What we know
