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The Airports Economic Regulatory Authority (AERA) has reduced the User Development Fee (UDF) for passengers departing from Hyderabad airport, with the revised charges set at INR 515 for domestic passengers and INR 1,030 for international passengers from September 1. The rates will apply through March 2031 under the airport’s five-year tariff period. The regulator has also rationalised landing charges and approved a variable tariff plan aimed at supporting traffic and route expansion. AERA fixed the airport’s baseline Aggregate Revenue Requirement at INR 11,683.49 crore, substantially below the amount sought by the airport operator.
The Airports Economic Regulatory Authority (AERA) has fixed lower User Development Fees (UDF) for departing passengers at Rajiv Gandhi International Airport in Hyderabad, with the revised rates coming into effect from September 1.
Domestic passengers departing from the airport will pay an UDF of INR 515, while the charge for international passengers has been fixed at INR 1,030. The rates will remain applicable until March 31, 2031, as part of the tariff order for the 2026-2031 control period.
The revised domestic UDF is lower than the INR 580 proposed by GMR Hyderabad International Airport Limited (GHIAL), which operates the airport, and below the existing charge of INR 750. For international passengers, the new UDF of INR 1,030 is also lower than the INR 1,150 proposed by GHIAL and the existing INR 1,500 charge.
AERA has determined the tariffs under an incremental Aggregate Revenue Requirement (ARR) framework. Under this approach, recovery of costs through airport charges is linked to the actual completion, commissioning and use of identified high-value capital expenditure projects planned by the airport operator during the latter part of the five-year tariff period.
The regulator has also rationalised landing charges for the period. Domestic flights will be charged INR 435 per metric tonne, while international flights will attract a landing charge of INR 630 per metric tonne.
AERA has additionally approved a Variable Tariff Plan (VTP) for Hyderabad airport. The plan is structured as a landing-charge incentive mechanism, with benefits available to airlines that meet prescribed qualifying conditions. The regulator said the mechanism is intended to support traffic development and route expansion while keeping aeronautical tariffs cost-reflective, transparent and non-discriminatory in line with International Civil Aviation Organization principles.
For the fourth control period, AERA has considered a baseline ARR of INR 11,683.49 crore, or INR 9,308.20 crore in present value terms. This compares with INR 27,851 crore, or INR 20,025 crore in present value terms, sought by GHIAL.
The approved baseline ARR translates into a yield per passenger of INR 426.39, which has been apportioned among landing and parking charges, UDF and other airport charges.
The decision follows AERA’s recent reduction in passenger fees at Bengaluru International Airport, where the regulator fixed the UDF at INR 300 for domestic passengers and INR 997 for international passengers for the five-year period ending March 2031. The incremental ARR framework was also used for determining the Bengaluru airport tariffs.
The revised Hyderabad airport charges are set to take effect from September 1, giving airlines and passengers a lower fee structure for the start of the new tariff period.
Source PTI
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