KOCHI: The Airline Users Rights and Grievances Redressal Forum on Thursday decided to take up the issue of user development fees charged by the Cochin International Airport Ltd (CIAL) with the Airports Authority of India (AAI) and the Union Civil Aviation Ministry saying that the airport was not interested in improving the facilities of common fliers, and instead the funds are used to cater to the ultra-rich customers.
“The executive committee of the Forum met here, and we are taking up the matter very seriously,” said Biji Eapen, its president.
He said the Forum had also decided to rope in the Delhi-based Pravasi Legal Cell (PLC), a non-profit that is committed to protecting the rights and the interests of the non-resident Indian community. “There are several aspects to the case. We will also move the courts to ensure that our Pravasis get a fair deal,” said Biji.
As reported by TNIE, the CIAL imposed user development fees or UDF at the rate of Rs 270/ticket for domestic passengers and `670/ticket for overseas travellers effective from 2022-23. And since then, the UDF constituted a big component of the airport company’s profits. The user development fee, which contributed Rs 114.59 crore to CIAL’s profits in the year ended March 31, 2023, increased to Rs 189.78 crore in 2023-24. The airport’s net profit for 2023-24 was Rs 412.58 crore, which meant that the UDF contributed to nearly 46% of its bottomline. In fact, the UDF was the second-biggest component of CIAL’s turnover in 2023-24, after rent & services, which stood at Rs 208.58 crore. The landing fee was below the UDF at Rs 160.36 crore, while the duty-free sales was Rs 112.95 crore.
Jose Abraham of Pravasi Legal Cell, told TNIE that there was a case of discrimination in the way the UDF funds were deployed by CIAL.
“It needs to be seen if some select customers are preferred over the common fliers in the utilisation of the UDF funds. We will first move the AAI and the Central government. If there’s no proper solution, we will move the appropriate courts,” said Jose.
The allegation is that instead of improving the facilities for ordinary passengers using the UDF funds, CIAL was spending the money on its golf course, building a 5-star hotel and establishment of a new business jet terminal. Another Rs 65-odd crore was spent on the ‘0484 Aero Launch’, which promises to offer a ‘premium airport launch experience at affordable rates’. However, it is learnt that the airport charges Rs 4,000 for a room for four hours. “At this price, a flier can get a 5-star room outside the airport,” said a source.