Flying from Hyderabad Airport to be costlier! AERA allows GMR to increase User Development Fee; details

By: |
October 01, 2021 1:19 PM

As per the regulator's orders, the airport operator was allowed to increase User Development Fee from the existing amount of Rs 281 to Rs 480 for domestic passengers and Rs 393 to Rs 700 for international passengers respectively from 1 April 2022.

Hyderabad airport, User development feeAERA has allowed GMR Hyderabad International Airport that manages Rajiv Gandhi International Airport to gradually increase User Development Fee on embarking domestic and international passengers from 1 April 2022.

Flying from Hyderabad Airport to get costlier! The Airports Economic Regulatory Authority (AERA) has allowed GMR Hyderabad International Airport that manages Rajiv Gandhi International Airport to gradually increase User Development Fee on embarking domestic and international passengers from 1 April 2022. In an order on the tariff’s revision for the third control period (from month of April 2021 to March 26) based on a proposal by the GMR Hyderabad International Airport Limited, the AERA has issued orders which were uploaded in its web portal recently. As per the regulator’s orders, the airport operator was allowed to increase User Development Fee from the existing amount of Rs 281 to Rs 480 for domestic passengers and Rs 393 to Rs 700 for international passengers respectively from 1 April 2022.

Similarly, the charges will be enhanced up to an amount of Rs 750 for domestic and Rs 1500 for international flyers by 31 December 2025. However, the charges will be cut down to Rs 500 for domestic passengers and Rs 1,000 for international flyers for the last three months of the Control period, the order by AERA stated. The authority has agreed for tariff increases along with additional charges in the form of UDF, but at the same AERA believes that the subsequent control period would be better in the context of lesser capital needs and larger passenger base owing to the recovery in aviation sector as well as the economy’s revival from the COVID-19 pandemic, AERA stated.

For the subsequent control period, the tariff rates are likely to be lower. In view of this, the tariff rates have been reduced by AERA in the last quarter of the final year of the Third Control Period, Financial year 2026, which may continue till tariff determination for the Fourth Control Period. The Rajiv Gandhi International Airport sought an increase of the User Development Fee from Rs 281 to a whopping amount of Rs 608 from October 1, a jump of 116% for departing domestic flyers. The airport operator, similarly, sought a 231% hike on international flyers to Rs 1,300 from the current amount of Rs 393. During the third control period, the GHIAL proposed to increase the UDF gradually up to Rs 728 for domestic and Rs 2,200 for international flyers by the end of the financial year 2025-26.

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