The Airports Economic Regulatory Authority of India (AERA) has given its approval for the revision of user development fees (UDF) at Mangaluru International Airports Ltd (MIAL).
MIAL had moved the AERA seeking revision in aeronautical tariff for a control period of five years from April 1, 2021, up to March 31, 2026. MIAL had pitched for revision of airport charges, including UDF, from passengers flying in and out of Mangaluru.
The AERA order, which was issued on January 12, has specified February 1, 2023 as the effective date for the new charges. In the order, AERA has also mentioned charges for each of the subsequent financial years: 2023-24, 2024-25 and 2025-26.
The present UDF is at ₹150 for domestic passengers and ₹850 for international passengers. UDF was limited only to embarking passengers till now. According to the new order, which comes into effect on February 1, even disembarking passengers will have to pay UDF.
UDF breakdown
Embarking passengerswill have to pay ₹350 for domestic flights and ₹770 for international flights from February 1 to March 31, 2023. Disembarking passengers will have to pay ₹150 for domestic flights and ₹330 for international flights during the period.
During 2023-24, applicable UDF will be ₹560 and ₹1,015 for embarking passengers on domestic and international flights, respectively. Applicable UDF for disembarking passengers will be ₹240 and ₹435 respectively.
For 2024-25, applicable UDF will be ₹700 and ₹1,050 for embarking passengers on domestic and international flights, respectively. Applicable UDF for disembarking passengers will be ₹300 and ₹450, respectively.
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During 2025-26, applicable UDF will be ₹735 and ₹1,120 for embarking passengers on domestic and international flights, respectively. Applicable UDF for disembarking passengers will be ₹315 and ₹480 respectively.
‘No major improvement’
A press statement by the airport said the airport has seen no major capital improvement and expansion since 2009. It has been over 12 years since the last tariff revision for the airport, which happened in September 2010. “The revision of the charges would be compensated by user experience of a world-class airport,” it said.
In addition to the ₹300 crore expansion works inherited from the Airports Authority of India, MIAL is planning additional capex of over ₹500 crore over the five years to meet compliance, essential safety and security requirements, it said.
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With modernisation of the airport underway, the proposed developmental projects, including re-carpeting of the runway and the construction of a new integrated cargo terminal, is estimated to cost over ₹800 crore, the statement said.