No UDF for domestic passengers at Hyd airport

GMR Hyderabad International Airport (GHIAL), the developers of  the greenfield Rajiv Gandhi International Airport at Shamshabad, has decided not to charge user development fee (UDF) from domestic passengers in the initial phase.

A UDF of $25 (about Rs 1,000) will be charged from all departing international passengers. The ministry of civil aviation has approved the company's decision. The airport will commence commercial operations within a fortnight (March 16).

"GHIAL is sensitive to the requirements of customers and stakeholders, and the board has decided not to charge UDF on domestic passengers and also not to increase landing and parking charges and passenger service fees," Kiran Kumar Grandhi, chairman (airports), GMR Group, said.

Stating that the decision would have a significant impact on the company's revenues, he said two-thirds of the estimated airport traffic of seven million in the first year would constitute domestic travellers.

According to Grandhi, GHIAL will finalise the UDF charges for domestic passengers in future after consulting users and stakeholders. The company is also examining the possibility of introducing different UDF charges for short-distance and long-distance domestic travellers. No time frame has been fixed in this regard.

GHIAL's decision not to charge UDF for domestic passengers comes in the wake of reports that low-cost carriers (LCCs) like JetLite, SpiceJet and Simplifly Deccan (formerly Air Deccan) have decided to drastically cut their flight schedules to Hyderabad and other new airports like Bangalore as they feel that the stiff UDF will make domestic travel expensive making their flights unviable.

Grandhi said GHIAL has also decided that the parking fees for vehicles at the new airport should not be more than the fee collected at the existing Begumpet airport.