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Wednesday, Dec 11, 2019

No airport user fee cut at Hyderabad, B'lore for 6 months

Govt may consider a reduction in user development fees, to be charged by developers of the Bangalore and Hyderabad greenfield airports.

india Updated: Mar 16, 2008 17:20 IST


The government may consider a reduction in user development fees (UDF), to be charged by developers of the Bangalore and Hyderabad greenfield airports, only six months after the operations commence, a top civil aviation ministry official said here.

Under the concession agreement, the developers of the two airports are legally permitted to charge UDF from the international and domestic passengers on their own for a period of six months.

For the first three months of operations, Hyderabad airport will charge a UDF of $22 per international passenger. It has waived the fee on domestic passengers. The fees for Bangalore airport have not yet been announced.

"Only after six months of the commencement of these two airports, can we expect some changes in UDF charges," an Air India official told IANS here.

The developers of Bangalore and Hyderabad airports would present their audit reports to the government only after they complete six months of operations.

On the basis of the project costs, the government could decide if the development charges can be brought down, the civil aviation ministry official said.

While Bangalore airport is expected to start its operations from May this year, the date for start of operations for Hyderabad airport is yet to be announced. Congress president Sonia Gandhi inaugurated the Hyderabadf airport March 14.