If all goes well, air fares to and from Mumbai and Delhi could cost less from January 2013.
India's Civil Aviation Minister Ajit Singh wants to cancel the Airport Development Fee that's causing higher air fares at the two major airports in the country.
Passengers currently pay Rs. 200 for domestic flights and Rs. 1,300 for international flights as Airport Development Fee at Delhi airport.
At Mumbai airport, the Airport Development Fees for domestic and international flights are Rs. 100 and Rs. 600 respectvely.
To offset the proposed abolition of the Airport Development Fee, India's Civil Aviation Ministry is asking the Airports Authority of India to infuse more equity in Mumbai International Airport Ltd (MIAL) and Delhi International Airport Ltd (DIAL).
" If the present funding gaps in case of MIAL and DIAL are met in terms of equity infusion and proportionate raising of loans by the airport promoter including AAI, the ADF will stand abolished," Ajit Singh said.
The Airport Development Fees were imposed in 2009 to bridge the funding gap in implementing the modernization projects at the two airports.
But like all government levies, they've become a permanent fixture much to the annoyance of both travelers and airlines.
The International Air Transport Association has rated Delhi airport the world's costliest.
The Civil Aviation ministry has also asked the Airport Authority of India not to impose Airport Development Fee on passengers at the Chennai and Kolkata airports.
Kingfisher Lockout Extended
Kingfisher Airlines has once again extended the suspension of its flights, this time till October 20.
The struggling airline first imposed the lockout on October 1 after its employees went on strike to protest non-payment of salaries for several months.
The airline says it's hopeful of resuming its flights from October 21.