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Trivandrum airport to charge user-fee on foreign fliers

Last Updated: Tuesday, May 11, 2010 - 19:19

New Delhi: The Airports Economic Regulatory
Authority (AERA) has permitted an ad-hoc user development fee
(UDF) of Rs 755 on every international passenger flying out of
the Trivandrum International Airport for a period of 10 years.

"The UDF will be applicable with effect from the date
of commissioning of new international terminal building," AERA
said in an order issued last week.

The Airports Authority of India (AAI) that operates the
airport had sought the Authority’s approval to begin levying
the airport tax or UDF for a period of either 10 or 15 years
for all passengers departing from the airport.

The AAI submitted that "the levy of UDF is imperative to
make the project viable and to attain a reasonable rate of
return." Besides this, the AAI had also demanded that the levy
should be coincided with the opening of the new international
terminal building. However, the Authority has rejected the AAI
demand to levy UDF on domestic passengers. "No UDF would be
leviable on domestic passengers," it said.

Making it clear that this is an ad-hoc arrangement,
the Authority said, "this ad-hoc determination would be
reviewed at the stage of tariff determination for the first
cycle and thereafter at such intervals as the Authority may
determine from time to time.?

As per AAI`s latest estimates, the project cost of new
international terminal has increased from the
government-approved Rs 245 crore to Rs 289 crore. The AAI had
made projections of UDF charges by considering revenues from
aeronautical side together with 30 per cent revenues from
non-aeronautical side such as retail and commercial spaces.

Besides Trivandrum, as of now, five international
airports - New Delhi, Mumbai, Bangalore, Hyderabad and Jaipur
--are allowed to collect UDF from the departing passengers.


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First Published: Tuesday, May 11, 2010 - 19:19
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