Friday, October 01, 2021

Flying out of Hyderabad to cost more starting next April till Dec 2025; tariffs fall from Jan 1, 2026

New Delhi: Flying out of Hyderabad will cost a lot more from next April. The Airports Economic Regulatory Authority (AERA) has approved an annual graded hike in both user development fees (UDF) — paid directly by flyers — and other aeronautical charges — levied on airlines, based on which ticket prices are decided — from April 1, 2022. AERA tariff order for Rajiv Gandhi International Airport order is for the third control period (TCP), from April 1, 2021, to March 31, 2026. However, charges for this fiscal (till March 31, 2022) have been kept unchanged to ensure that the nascent recovery in domestic air travel does not take a hit due to higher cost of flying.

UDF for departing domestic and international flyers will annually increase from current Rs 281 and Rs 393, respectively, to a steep Rs 750 and Rs 1,500 till December 31, 2025 (see box, taxes extra). From January 1, 2026, till the next order is issued, the UDF will fall to Rs 500 and Rs 1,000 per domestic and international passenger, respectively. Other aeronautical charges like aircraft landing and parking fees follow a similar trajectory.

AERA has followed the same tariff change trajectory at other airports that sought annual hikes like Bengaluru and Kochi.

“Air traffic demand in the first quarter of FY 2021-22 has been deeply impacted by the challenges posed by the Covid-19 (second wave) and the resultant slowdown in the economy. The first year is expected to be the most affected year of the TCP and any increase in tariffs or additional charges at this stage is likely to be detrimental for the recovery of traffic and the recovery of the sector as a whole,” the AERA order says.

01/10/21 Times of India

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