Chennai, Kolkata air travellers may have to shell out more

Mumbai:Fliers to and from Kolkata and Chennai will soon have to fork out more, with the Airports Authority of India (AAI) imposing a levy under the user development fund (UDF) on passengers using these two airports.
"It will be collected from passengers using airports where major development or expansion work has been undertaken by AAI. The proposed fund will be collected by AAI," Union civil aviation minister Praful Patel, told ET.
Planned on the lines of a road toll, where users contribute towards the construction cost, the UDF levy would be imposed on travellers to at least four more airports as per the plan.
Some of the other airports where UDF will be levied later are Jaipur, Udaipur, Thiruvananthapuram, Panaji and Ahmedabad. AAI has set aside Rs 12,000 crore for upgrading airports during the 11th Five Year Plan and needs substantial fund infusion.
According to an official from AAI, gradually some 35 small, medium airports would start collecting UDF. The economic slowdown and subsequent drop in air traffic seem to have forced AAI to look for a parallel, steady stream of revenues.
However, the delay, again due to the overall economic situation, has resulted in cost escalation.
For example, the cost of modernising Kolkata and Chennai airports has gone from about Rs 1,300 crore to Rs 5,000 crore. AAI needs over Rs 6,000 crore more to start work on 35 other airports across the country. UDF is expected to help AAI generate funds.
14/07/09 Girish Kuber/Economic Times

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Categories: Airports Jul 2009