AAI plans to levy development fee at non-metro airports

New Delhi: Flying from smaller cities, such as Aurangabad, Srinagar and Dehradun, is likely to become costlier with the state-owned operator, Airports Authority of India (AAI), proposing to levy a user development fee. AAI has sought the civil aviation ministry’s approval to levy user development fee or UDF ranging from Rs 250 to Rs 1,000 on those flying out from these airports, a government official said.
Airlines said the move will also hit traffic. “Air traffic on non-metro routes is still very low. Higher tariff would only act as a dampener,” an executive of a low-cost airline said.
AAI has sought the approval for a similar levy at Coimbatore and Madurai airports, along with several other smaller ones. While it has proposed a levy of Rs 500 on each domestic passenger flying out from these two airports, international travellers would have to fork out Rs 1,000 if the proposal is approved.
In case of Coimbatore airport the AAI has proposed to collect the fee for the next 10 years. At Madurai airport the levy is suppose to be for the next 15 years. UDF is a charge levied by airport operator to recover part of its investment made for upgradation of an airport.
22/04/10 Nirbhay Kumar/Economic Times

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Categories: Airports Apr 2010