Business Daily from THE HINDU group of publications
Tuesday, Mar 25, 2008
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Tuesday, Mar 25, 2008 ePaper | Mobile/PDA Version |
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Logistics
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Airlines Industry & Economy - Infrastructure Hyderabad airport: User development fee should ‘not exceed Rs 1,000’ Ashwini Phadnis New Delhi, March 24 The Ministry of Civil Aviation has asked the developers of the greenfield airport at Hyderabad to ensure that the user development fee (UDF) being levied on international passengers does not exceed Rs 1,000. A senior Government official told Business Line that a communication to this effect has been sent to the airport developers late last week. “The charge should not exceed Rs 1,000 irrespective of whether service tax is levied or not. We are also writing to the Ministry of Finance to find out whether a service fee should be imposed on UDF,” said a Ministry official. The greenfield airport which is being developed by a consortium led by the GMR group started operations last Sunday and at the moment levies a UDF of Rs 1,124 or $ 25 which has been rounded off to Rs 1,100 to make it easier for the passenger to pay. Officials were silent, however, on what steps could be taken in case the operator continued to charge a higher amount as UDF than what was suggested by the Government. The Airport Economic Regulatory Authority which is being set up to regulate costs at airports around the country and could probably have taken some action has not yet been set up, sources added. Meanwhile, the Geneva-based International Air Transport Association (IATA) has said that the decision of the new greenfield airports at Hyderabad and Bangalore to charge a differential user development fee on domestic and international passengers is also not correct. “When domestic and international passengers are using the same facility how can airports justify differential costs for passengers,” said IATA Manager, Corporate Communications, Asia and Pacific, Mr Albert Tjoeng. More Stories on : Airlines | Infrastructure
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