Rajiv Gandhi International Airport, Hyderabad
Rajiv Gandhi International Airport, HyderabadWikimedia commons

Rajiv Gandhi International Airport, Hyderabad, is planning a 60 percent hike in user development fee (UDF) or tariff rates. The additional fee is levied on passengers flying out of Hyderabad.

The Hyderabad airport, promoted by the GMR Group, is expected to submit a proposal in this regard to the Airports Economic Regulatory Authority (AERA) next week. The airport levies the highest UDF in India, at Rs 430 for every domestic ticket and Rs 1,700 per international travel, the Economic Times reports.

UDF is the basic charge levied on passengers to recover the investment of development work, such as building new terminal.

Bengaluru-based global infra firm GMR group holds 63 percent shares in Hyderabad International Airport whereas Malaysia Airports Holdings Berhad has 11 percent stake. Airport Authority of India and the Telangana Government both hold 13 percent stake in the airport, the ET report said.

According to reports, the joint venture company has already spent around Rs 2,478 crore in building the Greenfield airport. It posted a net profit of Rs 51 crore for the December 2016 quarter, compared to a loss of Rs 261 crore a year earlier. Of the total amount, user development fee accounted for 26 percent of its total revenue.

Lobbying body International Air Travel Association has heavily criticised the high airport charges in India. Its director, Tony Tyler, has reportedly said airport charges should be determined by the Airport Economic Regulatory Authority.

The revised rates are expected to be effective from April 1, 2016.

[1 lakh = 100,000 | 1 crore = 10 million | 100 crore = 1 billion]