THIRUVANANTHAPURAM: Though air passengers, particularly expatriates, have urged the Thiruvananthapuram airport authorities to slash the User Development Fee, which is heavily reflected in flight tariffs, the Airports Economic Regulatory Authority (AERA) that controls the User Development Fee has no plans to slash the rates for the next two years. This means that fliers must pay the current tariff rates until 2023.
This is due to the fact that the User Development Fee for domestic and international flights had been changed earlier and fixed in 2017. Since the User Development Fee is meant for a five-year period, Thiruvananthapuram airport authorities expected a rate difference or reduction during 2022. However, AERA has granted an extension period of one year owing to the pandemic, said an airport source.
User Development Fee is the fee collected from passengers for the provision of passenger amenities, services and facilities and it will be used for development, management, maintenance, operation and expansion of airport facilities.
Currently passengers are required to pay a User Development Fee of Rs 1,069 ( Rs 1,260 including GST) for international travel and Rs 506 ( Rs 598 including GST) for domestic travel. Meanwhile, the User Development Fee rate at Kochi airport is Rs 400 for international passengers and Rs 180 for domestic. The expatriates’ group in West Asia claimed two days ago that the airport is charging an additional Rs 1,341, which it termed unjustifiable.
According to the group, the airport charges an extra fee of Rs 2,603 (120 dirhams) for flights from the UAE to Thiruvananthapuram if it is booked from West Asia. At the same time, if it is booked from Thiruvananthapuram, they must pay an additional Rs 1,262 only. However, sources close to the airport rubbished the claims of expatriates and said that when they inquired with the travel agencies they said that the User Development Fee was Rs 1,260 even if the booking was done from Kerala.
“On checking, we found that the rates are the same in Kerala and West Asia. So, we do not know about the difference in the rates pointed out by the expatriates. However, we will look into it. But, it is true that Thiruvananthapuram airport has the highest User Development Fee in Kerala. It can only be amended in 2023, after AERA releases new rates. The existing rates are set to remain in effect from 2017 through 2023. AERA determines the UDF depending on a variety of factors, including the airport’s revenue. If the airport has good income and it is running on profit, the airport cannot charge this as per the AERA guidelines.However, many airports, like Thiruvananthapuram airport, are in the early stages of development and require additional investment. As a result, we cannot say for sure that the revised User Development Fee rate in 2023 will be lower than the existing rate,” a source said.
Isaac flags issue
Former finance minister T M Thomas Isaac in a recent Facebook post pointed out the alleged disparity in domestic ticket fares at Kochi and Thiruvananthapuram airports. According to him, the disparity in fares – the flight fare to Hyderabad from Kochi was Rs 5,171 while it was Rs 9,295 from Thiruvananthapuram, especially the higher rates charged in Thiruvananthapuram provided the scope for a case study.
Slash likely in winter
The higher ticket prices at Thiruvananthapuram airport, after it was privatised, are blamed on a smaller number of seats and the lack of additional airline services. An airport source said that IndiGo Airlines handles domestic airline services to Bengaluru and Chennai at Thiruvananthapuram airport.
“Domestic flight services are limited at Thiruvananthapuram airport in comparison to Kochi airport. IndiGo Airlines has a monopoly of the market. However, in Kochi, there are other companies in the running, so the rates are competitive. But, there is not much difference in the fares to West Asia from Thiruvananthapuram and Kochi. Not only that, the fare from Thiruvananthapuram is even less on some flights. But, more flights, including ‘Akasa,’ are expected to start operating from Thiruvananthapuram during the winter schedule, which begins from October-end. After that, the rates will become competitive here as well, “ the source added.