Now Reading: AERA cuts Hyderabad airport UDF by 31% from September 1
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AERA cuts Hyderabad airport UDF by 31% from September 1
Airports regulator AERA has cut the user development fee (UDF) for departing domestic passengers at Hyderabad airport to Rs 515 and for international passengers to Rs 1,030, effective September 1. The new…
Airports regulator AERA has cut the user development fee (UDF) for departing domestic passengers at Hyderabad airport to Rs 515 and for international passengers to Rs 1,030, effective September 1. The new rates are lower than the existing UDF of Rs 750 and Rs 1,500 respectively, and also below the airport operator's proposal of Rs 580 and Rs 1,150.
The tariff order covers the five-year control period from September 2025 to March 2031, based on an incremental Aggregate Revenue Requirement framework. AERA approved a baseline ARR of Rs 11,683.49 crore against GHIAL's demand of Rs 27,851 crore. Landing charges have been rationalised to Rs 435 per metric tonne for domestic and Rs 630 for international flights.
The regulator also allowed a variable tariff plan as a landing-charge incentive mechanism to encourage airlines to expand routes and traffic. The decision follows a similar steep reduction in UDF at Bengaluru airport earlier this week, where domestic UDF was cut to Rs 300.
Indian Opinion Analysis
For consumers, this decision by the AERA directly impacts flyers departing from Hyderabad: domestic passengers will save Rs 235 per ticket from September 1, and international passengers Rs 470. For perspective, in 2022, the AERA had sharply raised the UDF at Delhi airport, sparking protests from airlines, today the regulator is reversing course at two of India's busiest airports, citing the incremental ARR framework. Introduced by the AERA in 2019, that model ties charges to actual completion of capital projects, not upfront projections, a shift meant to prevent airlines and passengers from subsidising delayed or unused infrastructure. The tariff order covers the five-year period to March 2031, so these reduced rates are locked for the medium term, though GHIAL could seek a mid-cycle revision if its capex schedule changes. The AERA's next key tariff decision will be for Mumbai airport, where the current control period ends in March 2025 and passenger growth has been volatile.
Source: deccanchronicle.com
This story was synthesised by AI from the source linked above.
