Hyderabad airport gets HC nod to charge user fees

Collection of levy, revised charges for airlines won't be effective until AERA passes an order in this regard

A year after its abolition, the Hyderabad High Court has allowed the levy of user development fee at the Hyderabad airport. On Thursday, the GMR group, which runs the airport, told stock exchanges the “high court has given/issued a ruling in favour of GMR Hyderabad International Airport, which will now enable the airport to collect tariff (fees), as was earlier collected”.

But, collection of levy from passengers and the revised charges for airlines won’t be effective until the Airports Economic Regulatory Authority (AERA) passes an order in this regard.

A Hyderabad airport spokesperson did not respond to emailed queries on the issue. An AERA official said he was unaware about the court order.

Earlier, the Hyderabad airport charged a user development fee of Rs 430 and Rs 1,700 from domestic and international passengers, respectively. In February 2014, AERA passed an order abolishing the fee at Hyderabad airport. It also barred a rise in landing and parking charges imposed on aircraft. For the Hyderabad airport, the regulator also confirmed the single-till model, under which both aeronautical and non-aeronautical charges were considered to fix the charges.

Upset with the AERA order, Hyderabad airport filed a writ petition with the high court, which directed the aviation ministry to take a decision on the issue. In June, the ministry said a hybrid-till model be adopted to decide rates at the Hyderabad airport. Under this model, a portion of non-aeronautical revenue (commercial revenue) at the airport is considered while fixing the landing and parking charges, user fees and other aeronautical charges.

Subsequently, the Hyderabad airport again filed a writ petition, seeking levy of user charges and rates, as was the case before February 2014, as well as a directive to AERA to determine the airport charges.