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Kerala: User development fee hiked in Thiruvananthapuram Airport; Check details

Thiruvananthapuram Airport's user development fees (UDF) for domestic and international passengers have been increased. The Airport Economic Regulatory Authority approved these fees, which are lower than initially proposed by the airport.

Kerala: User development fee hiked in Thiruvananthapuram Airport; Check details anr
First Published Jun 27, 2024, 9:48 AM IST

Thiruvananthapuram: The Airport Economic Regulatory Authority (AERA) has sanctioned a more than 50 percent rise in user development fees at Thiruvananthapuram airport. The airport regulatory authority has also recommended that the Adani Group-operated airport reduce related-party transactions and prioritize the protection of all stakeholders' interests to optimize aeronautical charges.

According to the recent tariff order, starting from now until March 2025, domestic passengers will need to pay Rs 770, and international passengers Rs 1,540 (excluding taxes) as user development fees (UDF). These fees are set to increase in FY26 and FY27. Additionally, a UDF is being introduced for arriving passengers, with domestic arrivals paying Rs 330 and international arrivals paying Rs 660 in the current fiscal year. Notably, the UDF rates approved by the regulator are lower than those initially proposed by the airport.

The user fee rate at Thiruvananthapuram Airport is set to increase following the revised tariff by the Airport Economic Regulatory Authority. This marks the first hike in user fees since the Adani Group took over management in 2021. Normally revised every five years, the User Development Fee renewal for 2022 was delayed by two years.

The Adani Group is obligated to pay Rs 900 crore to the airport authority, citing losses incurred during the COVID-19 period as the reason for this substantial amount. Additionally, the group has been authorized to invest Rs 1,200 crore in Thiruvananthapuram Airport over the next five years. The sharp rise in user fees reflects these financial considerations. Despite fierce competition among airlines targeting domestic passengers and focusing on Thiruvananthapuram, domestic fares may not see significant changes. However, the substantial increase in user fees will likely pose a significant burden on international travelers.

Landing charges for domestic airlines have been increased by up to three times. Parking charges have also been revised, and a new fuel infrastructure levy has been introduced. This levy accompanies the proposal for a hydrant system at the airport, which will facilitate the dispensing of fuel directly to aircraft.

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