Mangaluru airport to increase user development fees for development activities

MANGALURU AIRPORT

Adani Airports-owned Mangaluru airport has sought an immediate increase of INR 100 in user development fee (UDF) for domestic passengers, to undertake development activities. It has also requested permission to levy the fee on both arriving and departing passengers.

The airport in its latest tariff filing has sought to levy a UDF of INR 250 on domestic passengers starting this October, and gradually increasing it to INR 725 by March 31, 2026.

The Airports Economic Regulatory Authority of India (AERA), the tariff-fixing body, is in the process of fixing tariffs for Mangaluru airport for the period of April 1, 2021, to March 31, 2026. For worldwide passengers, it has sought to levy a UDF of INR 525 and enhance it to INR 1,200 by March 2026.

Mangaluru airport to increase user development fees for development activities

UDF could be charged on each departing and arriving passenger if the AERA agrees to it. At the moment, the UDF is INR 150 for home and INR 825 for worldwide passengers, however, is charged solely to departing passengers.

Multiple Airport Authority of India (AAI) owned and private airports have sought an increase in tariff in light of the expansion works they have undertaken. Airlines have opposed any significant hike in user or landing and parking charges as this will hurt their recovery after Covid.

“Any increase in airport charges for the remaining period will worsen the crisis for airlines. Airport operators should equally play a role in this situation by lowering their profit expectations and help provide the much-needed financial help to airlines,” said an executive of a private airline.

The Airports Economic Regulatory Authority of India (AERA), the tariff-fixing body, is in the process of fixing tariffs for Mangaluru airport for the period of April 1, 2021, to March 31, 2026.

The Adani Group took over the operations of the worldwide airport within the Karnataka port metropolis on October 31, 2020.

In its submission to the pricing regulator, the airport mentioned no tariff revision had taken place since 2010. “The modernisation plan of the airport can also be underway. The cumulative affect of those concerns could have a consequential affect on the tariff,” it mentioned.

The proposed developmental tasks, together with re-carpeting of the runway, and the development of a brand new terminal construction and cargo terminal, are estimated to value about INR 5,200 crore. The airport mentioned it will fund these via debt and fairness from guardian Adani Enterprise.

The airport has additionally sought will increase in touchdown and parking costs for airways. The AERA has sought remarks from airways, passenger associations and enterprise jet operators.

The airport has additionally sought will increase in touchdown and parking costs for airways.

Mangalore International Airport serves the port city of Mangalore, in the east Indian state of Karnataka. Mangalore is served by most major Indian carriers, which provide domestic services and international services to destinations in the Middle East.  

Mangalore International Airport is the second busiest airport in Karnataka. In addition to domestic destinations, flights depart daily for major cities in the Middle East.

Airports Authority of India announced it formally transferred operation and management responsibility for Mangalore Bajpe Airport to Adani Airports in October 2020. Adani will operate Mangalore under a 50-year contract.

(With Inputs from The Economic Times)

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