A blow for international passengers

Arjun RaghunathFirst Published : 31 Mar 2010 01:00:00 AM ISTLast Updated : 31 Mar 2010 10:16:42 AM IST

The Airports Economics Regulatory Authority (AERA) has worked out an user development fee (UDF) of Rs 755 per embarking international passenger with the commissioning of the new international terminal at Thiruvananthapuram Airport. Domestic passengers will be spared the additional burden.


AERA, the regulatory authority on airline-related rates, is holding a high-level meeting with state government officials, including Chief Secretary Neela Gangadharan, and representatives of airlines in Thiruvananthapuram on April 5 to finalise the UDF.

The fresh developments have confirmed a recent report in these columns that UDF may be imposed at Thiruvananthapuram Airport soon.

According to a consultation paper issued by AERA, ‘‘the Authority proposes to approve levy of UDF at the Thiruvananthapuram International Airport at Rs 755 per embarking international passenger, purely on an ad-hoc basis, with effect from the date of commissioning of the New International Terminal Building for a period of ten years.’’

AERA has also published the consultation paper on the website of the Civil Aviation Ministry and sought comments and suggestions from the stakeholders. The last date for giving suggestions is April 9. The UDF would be formally announced afterwards, sources at the Ministry told Expresso from New Delhi over phone.

Airports Authority of India (AAI) had earlier proposed the UDF at Rs 1,020 per embarking international passenger and Rs 550 per embarking domestic passenger for a period of ten years. Another alternative suggestion of AAI was to levy UDF at Rs 715 per embarking international passenger and Rs 280 per embarking domestic passenger for a period of 15 years.

The AERA had, however, revised the rates after analysing the projected expenses and revenues pertaining to the new terminal. Various patterns that were worked out by AERA include levying Rs 710 and Rs 130 per embarking international and domestic passengers for a period of 10 years, Rs 525 and Rs 130 respectively for 15 years and Rs 575 per embarking international passenger alone for 15 years.

The AERA note also says that the UDF is being restricted only to international passengers as the domestic terminal would not be shifted to the new terminal building.

UDF is being levied at Rs 1,070 per international passenger and Rs 260 per domestic passenger at the new airport in Bangalore and Rs 1,000 and Rs 375 respectively at the new airport in Hyderabad.

The new terminal in Thiruvananthapuram has been constructed at a cost of Rs 290 crore. It could handle about 800 departing and 800 arriving passengers at a time. The total passenger movement at the Thiruvananthapuram airport during 2008-09 was 19.5 lakh, 75 percent of whom were international passengers.

The commissioning of the new terminal is being delayed owing to the construction of an approach road which has been entrusted with KITCO, a state government agency.