Airlines’ body opposes UDF hike proposal at Hyderabad airport

The airport operator sought a 231% hike on international passengers to Rs 1,300 from Rs 393.
Hyderabad airport (File Photo | R Satish Babu, EPS)
Hyderabad airport (File Photo | R Satish Babu, EPS)

NEW DELHI: Airport operator GMR Group’s proposal to increase aeronautical tariffs including user development fee (UDF) at the Rajiv Gandhi International Airport (Hyderabad) has been opposed by the Federation of Indian Airlines, whose members include IndiGo, SpiceJet ans GoAir. 

GMR had proposed to Airports Economic Regulatory Authority (AERA) seeking an increase of UDF from the existing Rs 281 per passenger to a whopping Rs 608 from October 1 at the Hyderabad airport. The 
airport operator sought a 231% hike on international passengers to Rs 1,300 from Rs 393.

GHIAL (GMR Hyderabad International Airport Ltd), during the third control period, has proposed to gradually increase the UDF up to Rs 728 and Rs 2,200 by the end of 2025-26 for domestic and international passengers respectively.

“In this regard, FIA humbly requests AERA to not implement any increase in the aeronautical tariff in the third control period and defer any increase in the same to the subsequent control period, given the adverse financial impact of Covid-19 on airlines,” FIA said in response to a consultation paper. 

The AERA last month issued a consultation paper on the tariff revision for the third control period (April 2021 to March 2026) proposed by GHIAL that manages the aerodrome, seeking comments from the stakeholders. 

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