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India to drop airport fee in New Delhi and Mumbai

Published on Oct 16, 2012 10:46 PM

NEW DELHI (REUTERS) - India will abolish a controversial airport fee at New Delhi and Mumbai airports from January 2013, the government said, as the country seeks to bolster air travel amid complaints of high costs by global airlines.

India recently allowed foreign carriers to buy a maximum 49 per cent stake in local carriers, but so far no airline has shown interest, with high infrastructure costs among the deterrents.

New Delhi airport has been termed the world's costliest by the International Air Transport Association (IATA).

Asia's largest budget carrier, AirAsia of Malaysia, said last month that it had no immediate plans to enter India because fuel taxes and airport charges were too high.

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