AERA may revise UDF, DF at major airports



"We would revise the UDF at Hyderabad and Bangalore airports and also the development fee at Delhi and Mumbai," AERA Chairman Yashwant Bhave told reporters. The Hyderabad airport levies Rs 375 and Rs 1,000 on every outgoing domestic and international passenger, respectively, as UDF. Similarly, Bangalore charges Rs 260 and Rs 1,070 from domestic and international passengers, respectively.

The government also allowed the Delhi airport to levy Rs 200 and Rs 1,300 on every domestic and international passenger, respectively, as the development fee. Passengers at Mumbai pay Rs 100 and Rs 600. The fee would be revised keeping in view the financial requirements of the airport projects and traffic projections. Passenger numbers have also improved since August on a year-to-year basis.

The UDF translates into revenue for the developers, while the development fee is collected by them into escrow accounts to be used for the purpose of infrastructure development at the respective airports. The modernisation of Delhi and Mumbai airports are being carried out by GMR-led and GVK-led consortia. Another GMR-led consortium has built the Hyderabad airport, while the one at Bangalore has been developed by Siemens-led consortium.

AERA would also lay down standards soon for providing amenities and services that developers would be required to adhere to. Different quality standards would be set for each of the 11 major airports in the country which come under the ambit of AERA, including those at Delhi, Mumbai, Bangalore and Hyderabad. AERA is an autonomous body and has been set up by an Act of Parliament to fix, review and approve the tariff structure for aeronautical services at 11 major airports in the country. The prime objectives of AERA are to create a level-playing field, foster healthy competition among airports and encourage investment in airport facilities.

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