India’s Airports Economic Regulatory Authority (AERA) has deferred 15.02 per cent of the Aggregate Revenue Requirement (ARR) in the final tariff order for the first control period between 2026 and 2031 for Noida International Airport.
On Monday, businessline, in a conversation with AERA Chairperson SKG Rahate, had reported that AERA had significantly rationalised the ARR proposed by the airport operator.
Accordingly, the ARR has been deferred to the next tariff cycle in order to moderate airport charges during the initial years of operation.
The regulator said the move was aimed at reducing the tariff burden on passengers and airlines at the upcoming greenfield airport, which is scheduled to commence commercial operations from June 15.
Notably, AERA said Yamuna International Airport Private Limited (YIAPL), the airport operator, had submitted an ARR of around ₹6,847 crore for the first control period under its Multi-Year Tariff Proposal.
However, after carrying out analysis, prudence checks, and stakeholder consultations, AERA said it rationalised the proposed revenue requirement and allowed around ₹5,308 crore.
“Keeping in mind the fact that Noida Airport is a greenfield airport with significant upfront capital investment and a comparatively lower initial traffic base resulting in higher airport charges, AERA has deferred (carried forward) a substantial portion (15.02 per cent) of the ARR to the next Tariff Cycle (2nd Control Period) so as to moderate the airport charges in the interests of passengers and airlines,” the regulator said.
AERA’s User Development Fee
Consequently, AERA fixed the User Development Fee (UDF) for departing domestic passengers at ₹490 per passenger for 2026-27 against the ₹653 proposed by the airport operator.
For departing international passengers, the regulator fixed a UDF rate of ₹980 against the proposed ₹1,200.
These charges are unchanged from the ad hoc tariff order issued by the regulator in August 2025.
Besides, the domestic landing charge was fixed at ₹725 per metric tonne compared to the ₹760 proposed by the airport operator.
Furthermore, AERA said the UDF approved for the airport remains comparable with the national average at major airports and within the range currently levied at non-major airports.
Similarly, the regulator pointed out that UDF has been determined for both embarking and disembarking passengers as airport infrastructure such as aero bridges, travelators, conveyor belts, and terminal facilities are utilised by both categories of passengers.
Meanwhile, AERA said distributing the tariff burden between departing and arriving passengers would ensure a more equitable recovery of airport infrastructure costs.
Variable Tariff Plan
The regulator further approved a Variable Tariff Plan for the airport in order to encourage airlines to start new routes, increase flight frequencies, and expand network operations during the initial years of traffic ramp-up.
According to AERA, the Variable Tariff Plan will primarily apply to landing and parking charges and is expected to support airlines in gradually building passenger traffic from the airport.
In addition, AERA reiterated that airport charges at Noida International Airport cannot be directly compared with those at Delhi airport due to structural differences between greenfield and brownfield airports.
Speaking to businessline a day earlier, AERA Chairperson Rahate had said Delhi airport is an established brownfield airport with depreciated assets and high passenger traffic, whereas Noida International Airport is a newly operational greenfield airport built with substantial upfront investments and lower initial traffic volumes.
Presently, fares from Noida International Airport remain nearly identical to those from Delhi airport on several domestic routes despite Uttar Pradesh levying only 1 per cent Value Added Tax on Aviation Turbine Fuel compared to nearly 25 per cent in Delhi.
These fares have led some industry executives to state that higher aeronautical charges and UDF at the airport are offsetting gains arising from lower fuel taxation.
Nonetheless, sectoral experts aware of the tariff structure said these charges account for only a small portion of airline operating costs, while airlines continue to derive significant benefits from lower ATF taxation in Uttar Pradesh.
Published on May 13, 2026