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User development fee or UDF is now slashed by Chennai airport
Posted on: 24/Apr/2018 10:01:24 AM
This news would make many frequent flight travellers in Chennai happy now. The latest news is user development fee or UDF is just Rs 69 for passenger at the Chennai airport. This would come into effect from 1st of May 2018.
Presently Rs 166 is charged as UDF for the domestic passengers and Rs 667 for international passengers is known and this would be reduced soon. Due to increasing fuel rates, airlines might not pass on the benefit by lowering the fares.
The AAI or Airport Authority of India has now woken up to the order passed by Airports Economic Regulatory Authority of India or AERA regarding reduction in the UDF from 1st of May 2018. Revenue loss of amount Of Rs 200 crores would be there once the order comes into existence.
It must not be forgotten that on 18th April 2017, AAI proposed to increase the UDF to Rs 200 per domestic passenger and Rs 400 per international passenger. AERA made huge noises when it suggested total waivering of this UDF in its consultation paper released in the month of February.
AAI submitted that it needed an additional grant of amount of Rs 300 crores for its many operational requirements and the move to charge just Rs 69 as UDF for both domestic and international passengers was taken.
It is worthy to mention that domestic and international landing charges are also reduced by 89 percent and this would have huge impact on the money collected as landing charge. Last year the amount was Rs 305.6 crores. In this financial year this amount would fall to Rs 59.7 crores.
From Rs 1174.4 in the past it is now Rs 196 as fuel throughput charge. According to the aviation industry, the fuel throughput charge has no cost basis and must be eliminated. The AAI’s revenue would reduce from Rs 131.7 crores to Rs 45.8 crores.
