User fees from Feb 1 to raise cost of flights from Mumbai

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fe Bureau: New Delhi, Jan 17 2013, 02:49 IST
Flying out of Mumbai is set to cost more with the Airports Economic Regulatory Authority (AERA) allowing Mumbai International Airport Ltd (MIAL) to levy a user development fee (UDF) on every departing passenger with effect from February 1.

From next month, R692 will be levied on every departing international passenger while R346 will be levied on every departing domestic passenger. The fees will come down to R548 (international) and R274 (domestic) from April.

The UDF will be in addition to the existing Airport Development Fee (ADF) of R100 per departing domestic passenger and R600 per departing international passenger.

“This is the first UDF which has been introduced during the first regulatory period (2009-10 to 2013-14),” said an MIAL spokesperson. “To compensate for the first four years, UDF has been kept higher for the first two months.”

Airlines pay a UDF to the airport operator for parking and landing facilities and pass it on to passengers. For the airport operator, UDF is a revenue enhancement measure, allowing it to get a fair return on investments. Since UDF is considered an aeronautical tariff, it does not need to be shared with the government, but Airports Authority of India which has a 26% stake in MIAL will continue to get its share.

With MIAL charging UDF, it joins Delhi International Airport Ltd where the charges are R600 to R1,200 for departing international passengers and R490 to R990 for arriving international passengers. Departing domestic passengers are charged R260 to R520 while arriving domestic passengers are charged R220 to R440

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