Chennai: The country’s airport tariffs regulator has suggested to Airports Authority of India that it not charge flyers user development fee (UDF) at Chennai International Airport from next year.
The Airports Economic Regulatory Authority of India (AERA) recommended that AAI, AII facilty’s operator, discontinue the charge — a contentious issue due to the airport’s capacity constraints amd limited amenities — because it failed to use money it collected to develop the airport in the past five years.
AAI has in recent years collected between Rs 250 crore and Rs 300 crore and more as UDF annually.
The fee, for passengers on flights departing the city, is Rs 667 for flyers headed to international destinations and Rs 166 for those on flights to domestic endpoints.
The tariff may not appear to be significant, given that flyers have to contend with hourly fluctuations of thousands of rupees in ticket prices, but UDF has proven to be a sticking point between AERA, operators and customers in several airports across the country. In Hyderabad, for instance, operators GMR Airports challenged in the AP high court an AERA order abolishing UDF at the facility in February 2014.
27/02/18 V Ayaappan/Times of India
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The Airports Economic Regulatory Authority of India (AERA) recommended that AAI, AII facilty’s operator, discontinue the charge — a contentious issue due to the airport’s capacity constraints amd limited amenities — because it failed to use money it collected to develop the airport in the past five years.
AAI has in recent years collected between Rs 250 crore and Rs 300 crore and more as UDF annually.
The fee, for passengers on flights departing the city, is Rs 667 for flyers headed to international destinations and Rs 166 for those on flights to domestic endpoints.
The tariff may not appear to be significant, given that flyers have to contend with hourly fluctuations of thousands of rupees in ticket prices, but UDF has proven to be a sticking point between AERA, operators and customers in several airports across the country. In Hyderabad, for instance, operators GMR Airports challenged in the AP high court an AERA order abolishing UDF at the facility in February 2014.
27/02/18 V Ayaappan/Times of India
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