Friday, September 30, 2016

No user development fee for domestic flights from Mumbai airport

Mumbai: Domestic passengers from Mumbai will not be charged an user development fee (UDF) and international passengers will pay half of the current levy following the revision in airport tariff by the Airport Economic Regulatory Authority (AERA) on Thursday.

At present domestic fliers from Mumbai are levied a UDF of Rs 274 (excluding service tax) and now that has been done away with. International passengers pay Rs 548 as UDF and that has now been reduced to Rs 227 (excluding service tax). The international UDF will see a revision to Rs 218 and Rs 278 in FY 18 and FY 19. The UDF is included in ticket price and is a direct levy on passengers.


The new charges will come into effect from November 1 and are part of the tariff order for five year period extending till 2019. However for passengers the relief from reduced UDF could be short lived and airlines may hike fares to bear additional charges imposed on them.

In order to compensate for the loss due to reduction in UDF, Mumbai airport proposed a revision in landing charges it collects from airlines and the same was approved by the airport regulator. Along with landing charges, airlines also pay common user terminal equipment charges and fuel throughput charges. Over all the tariff has been reduced by 4.6 per cent.
30/09/16 Aneesh Phadnis/Business Standard
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