The new GMR Hyderabad International Airport Limited (GHIAL) has decided not to impose the passenger fee following a request made by the civil aviation ministry.

The GHIAL heeded to the ministry appeal and has decided to await the setting up of the Airport Economic Regulatory Authority (AERA) to decide on the issue, informed sources told Deccan Herald on Wednesday.

The Bangalore International Airport Limited (BIAL) is another greenfield airport that wants to impose the fee – also called User Development Fee (UDF). The ministry has appealed to the BIAL to do a rethink on the issue.
“So far, there has been no positive response from BIAL”, an official familiar with the issue, said. The ministry plans to continue its effort to persuade BIAL to either drop levy of the charge or reduce it. As per the BIAL proposal, the domestic passenger leaving out of Bangalore will be levied UDF of Rs 675 and international passenger Rs 955. There is no charge on the passengers on arrival. The BIAL has the right to levy the fee as it is part of the concession agreement among the airport developer, Karnataka government and the ministry.

Delhi and Mumbai airports, which have been given to private operators to modernise and operate, have not been levying UDF at present. Indian airports currently charge passenger service fee of Rs 225 per passenger. Of this, Rs 70 goes to the operator and Rs 130 to  Central Industrial Security Force (CISF) which takes care of security in airports.

The Devanahalli airport is set for a March 30 opening while the Hyderabad takes off on March 16.