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• Hyderabad's Rajiv Gandhi International Airport has proposed a revised passenger fee structure that introduces User Development Fee (UDF) for arriving passengers alongside existing departure charges.
• The proposal, submitted to the Airports Economic Regulatory Authority (AERA), aims to redistribute airport charges without increasing the total fee payable by most travellers.
• The revised tariff framework is intended to support the airport's next phase of expansion, including a new terminal and runway.
• The proposal will take effect only after AERA reviews stakeholder feedback and issues its final approval.
Hyderabad's Rajiv Gandhi International Airport is looking to redefine how passenger charges are collected as it prepares for a major expansion of its infrastructure. Instead of increasing the overall financial burden on travellers, the airport operator has proposed redistributing User Development Fee (UDF) between departing and arriving passengers. The move forms part of a wider tariff revision submitted to the sector regulator and reflects the airport's long-term strategy to fund capacity expansion while aligning its pricing framework with evolving practices at other major Indian airports.
GMR Hyderabad International Airport Ltd (GHIAL) has submitted its tariff proposal for the Fourth Control Period to the Airports Economic Regulatory Authority (AERA), covering September 2026 to March 2031. The proposal seeks approval for revised aeronautical charges, including passenger fees, airline tariffs and airport service charges, as the airport enters its next investment cycle focused on expanding capacity and improving infrastructure.
A key feature of the proposal is the introduction of a User Development Fee for arriving passengers. At present, UDF is levied only on departing travellers. Under the revised structure, the fee would be distributed between departures and arrivals, while keeping the total amount payable by passengers broadly unchanged during most of the tariff period. According to the airport operator, the revised approach is intended to create a more balanced cost-sharing mechanism without imposing an additional overall burden on passengers.
The proposed changes come as Hyderabad airport prepares for a large-scale infrastructure expansion estimated at nearly INR 14,000 crore. The investment programme includes construction of a new passenger terminal, development of an additional runway and expansion of supporting airside infrastructure to accommodate rising passenger traffic over the coming years. The airport expects sustained growth in domestic and international travel, requiring significant capacity enhancement.
Besides passenger charges, the tariff proposal also recommends revisions to landing, parking and other aeronautical charges applicable to airlines. GHIAL has proposed incentive mechanisms aimed at attracting new domestic and international routes, including concessions for airlines launching new services or expanding connectivity from Hyderabad. The airport believes such measures will strengthen its position as an important aviation gateway in southern India while encouraging greater airline participation.
The airport operator has maintained that the proposed tariff framework is designed to support long-term infrastructure financing while ensuring operational competitiveness. It has also requested AERA to consider recent judicial developments relating to airport tariff regulation during its evaluation of the proposal. The revised charges will be implemented only after the regulator completes its consultation process, reviews stakeholder responses and issues its final tariff order.
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