Govt to ensure lower user fee at new airports

New Delhi: Wiser from the row over user development fees (UDF) with the developers of GMR Hyderabad International Airport (GHIAL) and Bengaluru International Airport (BIAL), the government is planning to mandate greenfield airport developers to cross-subsidise aeronautical cost with non-aeronautical revenues. The move is expected to result in reasonable UDF burden on air travellers and increased air traffic growth.
This comes at a time when GHIAL and BIAL are planning to charge high UDF from domestic and international passengers. The government wants to avoid a similar situation in the proposed greenfield projects at Goa, Pune, Visakhapatnam and Kannur. The stipulation would not apply to the new Hyderabad and Bangalore airports.
User charges are directly proportional to the investment made by the airport developer in building aeronautical infrastructure. The operation, management and development agreement (OMDA) for Delhi and Mumbai airports require the operators to cross-subsidise aeronautical cost with non-aero revenue effective 2009.
25/02/08 Nirbhay Kumar/Economic Times

To Read the News in full at Source, Click the Headline

Categories: Airports Mar 2008, New Mar 2008