Tuesday, July 13, 2021

Hyd airport seeks phase-wise hike of UDF & other charges from Oct

Majorly impacted by the pandemic, the operator of Hyderabad Airport has sought a phase-wise hike in user development fees (UDF) and other aeronautical charges starting this October, up to March 2026. It proposes to raise the current fee per departing domestic (Rs 281) and international passenger (Rs 393) to Rs 728 and Rs 2,200, respectively, in this period (see box).

Incidentally, the Airports Economic Regulatory Authority (AERA) had slashed GMR Hyderabad International Airport’s (GHIAL) UDF from Rs 430 (domestic) and Rs 1,700 (international) from April 1, 2020, to the current levels. A proposal for part of the overall higher aeronautical tariffs — a mix of UDF and other regulated levies like landing and parking charges — for the third control period (FY 2022-26), has been submitted to AERA for approval.

The regulator, in turn, has sought comments from the public and stakeholders on the tariffs sought by GHIAL and will accordingly decide the rates. Bengaluru Airport has also sought phase-wise steep hike in UDF and other aero charges. The GMR Group is currently undertaking expansion work at its existing airports — Delhi and Hyderabad — apart from building a greenfield one on Goa.

The Hyderabad airport’s capacity is being hiked from the original 1.2 crore passengers per annum to over 3.4 crore. With the pandemic crippling air travel since last March, revenues of all aviation stakeholders like airlines, airports and flight caterers has been severely hit.

13/07/21 Saurabh Sinha/Times of India

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