Airlines tussle with GMR on higher UDF

It hasn't been a smooth takeoff for the GMR consortium, which runs the brand new Hyderabad airport. The airline operator plans to negotiate with the civil aviation ministry for higher user development fees (UDF). But it's facing stiff opposition from airlines. GMR consortium or GHIAL (Greater Hyderabad International Airport Limited)expects airlines to include the user development fee as part of the airfare. Airlines say they want a part of the pie in terms of 1 to 1.5 % of commission if they are forced to add on the surcharge and collect it on behalf of the airport operators. Wolfgang Prock-Schaeur, CEO, Jet Airways said, “We have clearly stated that we don't want to collect UDF and propose to postpone it for a certain period of time. If however this fee is introduced, we will ask the airports and communicate to the respective channels through the FIA (Federation of Indian Airlines) that the airports collect this fee on their own.”
Airlines are also saying they are not in a position to levy any additional charges as they plan to raise air fares in Septemeber. They are already seeing a significant fall in passenger traffic. But the GMR consortium officials say they have been collecting user development fee of 1000 rupees from international outbound passengers for the past three and a half months.
27/08/08 Shivani Muthanna/CNBC-TV18/Moneycontrol.com

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

Categories: Airports Aug 2008