The Hindu Business Line : Govt suggests airports levy user fee based on distance flown

It is felt that with new airports in Hyderabad and Bangalore set to open soon, going in for a differential system of levying user fee would ensure that air remains the preferred option for travel between the cities.

Our Bureau

New Delhi, Feb. 5 The Ministry of Civil Aviation has suggested a distance-linked differential system of user fee levy by airport developers.

Instead of the present system of charging a uniform fee of Rs 750 per passenger, the Ministry proposed that the user fee be raised in proportion to the distance travelled. That means a passenger flying between Chennai and Madurai will pay less compared to someone travelling between Chennai and Delhi.

The Government feels that with new airports in Hyderabad and Bangalore set to open soon, going in for a differential system of levying user fee would ensure that air remains the preferred option for travel between the cities.

The need for a review of user charges is being felt as the new airports in Hyderabad and Bangalore are some distance away from the city and with fares being high a passenger may decide to travel by train or road.

The suggestion was made at a meeting the Civil Aviation Secretary, Mr Ashok Chawla, held today with airline officials including the Chief Executive Officer of Jet Airways, Mr Wolfgang Prock-Schauer; the Executive Chairman, SpiceJet, Mr Siddhanta Sharma; and the President and CEO, IndiGo, Mr Bruce Ashby.

At the meeting, a proposal was also made to extend the timeframe in which an airport developer recovers the investment made in developing the airport.

“Airport developers said that at the moment the UDF is Rs 750 so that they can recover their investment within five years. We have suggested that the developers look at recovering their costs in 7-10 years,” a senior Government official said.

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