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MUMBAI: Mumbai airport is set to follow in Delhi’s footsteps by increasing airport charges. The Airport Economic Regulatory Authority (AERA) would consider Mumbai airport’s demand over the next two months to raise charges by around 500%.

Airlines, struggling to keep operations going, will have no choice but to pass on the hike to passengers, industry sources said, predicting a hike of at least 15% in fares once AERA clears the increase in airport fee for Mumbai. On Wednesday, AERA allowed a 345% hike in airport landing and parking charges, or user development fee (UDF), at Delhi’s IGI Airport over the next two years.

AERA would now be considering a proposal by the Mumbai International Airport Pvt Ltd (MIAL) to increase its UDF. As per preliminary estimates made by the Centre for Asia Pacific Aviation (CAPA), the UDF hike at Mumbai airport is likely to be higher than in Delhi.

CAPA estimates that once Mumbai also gets a sanction to charge a higher fee, the price of the Delhi-Mumbai-Delhi ticket would go up by 16-20%. "A Delhi-Mumbai return trip fare is likely to go up by Rs 1,600 to 2,000. We expect Mumbai’s tariff to be higher than Delhi," said Kapil Kaul, CEO, subcontinent and Middle East, CAPA.

"We expect flying costs to be severe in the near term due to continuing high fuel prices, rupee depreciation, increase in service tax and hike in airport fee," Kaul said.

Tour operators concurred, saying travellers will have to shell out at least 20% more in the next four to five months. International travellers would also be paying Rs 2,000-3,500 more for flying in and out of Mumbai once AERA sanctions a UDF for the airport.

Mumbai airport has already got the go-ahead to charge an airport development fee of Rs 100 from domestic flyers and Rs 600 for international flights from May1.

"Service tax has already pushed fares up by15% for both domestic and international destinations. Now, with the airport tariff hike, cash-strapped airlines will be forced to charge the passenger more," a Fort-based travel agent said. "Many airlines may even pull out operations from the airports if the costs get too high," he added. A MIAL spokesperson said Mumbai airp-ort’s proposal for UDF was under consideration.