Follow Us:
Tuesday, December 10, 2019

User development fee: Flying out of Hyderabad airport gets more expensive

The DGCA circular came post an order from the high court in Hyderabad which permitted the airport operator to charge UDF earlier this month.

Written by Sharmistha Mukherjee | Amitabh Sinha & Debabrata Mohantynew Delhi, New Delhi | Published: November 5, 2015 1:18:43 am

Passengers flying out of Hyderabad airport would now have to shell out extra money with the Directorate General of Civil Aviation (DGCA) permitting the airport operator to charge User Development Fee (UDF) with effect from November 3, 2015.

While domestic passengers will have to pay UDF of Rs 430 per flight ticket, international passengers will pay about Rs 1,700 per flight ticket. The charges are not inclusive of service tax, which would add another 14 per cent.

The DGCA circular came post an order from the high court in Hyderabad which permitted the airport operator to charge UDF earlier this month.

Share This Article
Share
Related Article

The Airports Economic Regulatory Authority (AERA) passed an order abolishing UDF at the Hyderabad airport in February 2014. It also barred an increase in landing and parking charges at the airport. For the Hyderabad airport, the regulator also confirmed the single-till model, under which both aeronautical and non-aeronautical charges were considered to fix the charges.

Upset with the AERA order, Hyderabad airport filed a writ petition with the high court, which directed the ministry to take a decision. In June, the ministry said a hybrid-till model be adopted to decide rates at the Hyderabad airport. Under this model, a portion of non-aeronautical revenue (commercial revenue) at the airport is considered while fixing the landing and parking charges, user fees and other aeronautical charges.

The Hyderabad airport again filed a writ petition, seeking levy of user charges and rates, as was the case before February 2014, as well as a directive to AERA to determine the airport charges. This has now been approved by the DGCA.

For all the latest Business News, download Indian Express App

Advertisement
Advertisement
Advertisement
Advertisement