Guwahati airport set to charge uniform UDF to lure int?l flights

Guwahati?s Lokpriya Gopinath Bordoloi International Airport (LGBIA) is set to introduce a uniform user development fee (UDF) for both domestic and international flights from January 1. The move is aimed at attracting direct international flights. The airport will be the first in the country to have a uniform UDF for both domestic and international flights.

A senior official of Airports Economic Regulatory Authority (AERA), which regulates tariff for aeronautical services at major airports, told FE that the move was aimed at bringing in more international airlines to Guwahati.

According to Airport Authority of India (AAI) officials, the Guwahati airport, which used to have upto five international flights daily till about two years ago, currently operates just one international flight, connecting Guwahati to Bhutanese town of Paro daily.

AERA has in a November report stated that ?it (AAI) believes given the conditions at LGBIA, a higher UDF may not be sustainable. A copy of the document has been reviewed by FE. The Guwahati airport currently charges R233 as passenger service tax per person for its domestic services.

Under the new rate,recently approved by AERA, the airport will charge R295 as UDF to both its international and domestic passengers.

At present, travelers from Guwahati have to travel via Kolkata ? the closest Metro city ? which takes about 80-90 minutes by air and overnight by road, to take an out-bound international flight. Kolkata currently operates about 60 international flights daily and charges R1,000 and R400 per person as UDF for international and domestic passengers, respectively.

The Guwahati airport, which has a passenger-handling capacity of 5.5 million passengers after being refurbished in December 2009, currently handles only about 1.5-2 million passengers a year.

The move to charge a uniform UDF, however, could see an increase in the number of passengers, especially among short-haul international flights, according to AERA. Taking a cue from future projections, the AAI has also announced plans to build another runway at the Guwahati airport at a cost of R500 crore.

However,a lower UDF may not be enough to attract foreign airlines.?The volume of international passengers at any destination depends on the trade and toursim quotient of the area. Although Guwahati attracts tourists, it falls behind other destinations as a trade centre,? explained a senior sector analyst. ?It will be premature to say that a lower UDF alone will result in more international flights and passengers from Guwahati,? he added.