Tuesday, February 26, 2008

Low-cost carriers to cut flights over user charges

New Delhi/Mumbai: With the Bangalore airport announcing stiff user developmental fee (UDF) on domestic passengers, low-cost carriers (LCCs) - JetLite, SpiceJet and Simplifly Deccan (formerly Air Deccan) - have decided to drastically cut their flight schedules to the city and other new airports like Hyderabad.
Bengaluru International Airport Ltd, which runs the new airport to be operational at the end of March, is imposing Rs 240 as UDF on domestic passengers flying from the city, which will be hiked to Rs 675 from June 1.
It has also imposed UDF of Rs 520 on international flights which will be hiked to Rs 955 again on June 1.
The new Hyderabad airport, controlled by the GMR group, is also negotiating with the government on imposing UDF of a similar nature. GMR executives say that the charges will be finalised in a few days.
26/02/08 Surajeet Das Gupta & Manisha Singhal/Business Standard
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