After 10 years, Mangaluru Airport seeks hike in User Development Fee
To build, operate, modernize, and expand its facilities
Mangaluru, Aug 26, 2022: Mangaluru International Airport Limited (MIAL) has moved to Airports Economic Regulatory Authority of India (AERA) seeking revision in aeronautical tariff for a period of 5 years.
MIAL is pitching for levying user development fee (UDF) for passengers flying in and out of Mangalore to facilitate them with the best of experience. It is a move to not only provide the best-in-class experience to its users and the on-going expansion but also with identified new investments, which are necessary for safety, security, passenger convenience and optimal utilization of the airport.
Since 2009, the airport has seen no major capital improvement and expansion. Also, it’s been 10 years since the last tariff revision for the Mangaluru Airport. It last happened in September 2010. The levy of the fee will only result in marginal increase in fares which would be compensated by user experience of world-class airport.
A case in example here is Delhi’s Indira Gandhi International Airport (IGIA). UDF at Indian airports has traditionally been levied on departing passengers, barring for a brief period at Delhi’s IGIA over a decade back when arriving flyers also had to pay this charge.
And the outcome is known to one and all, seen and witnessed too as IGIA wears the hat of the Best Airport in India and Central Asia for the past three consecutive years (adjudged by Skytrax World Airport Awards which is considered as one of the highest honours in the aviation and airport industry), sources said.
MIAL is set to follow suit. Currently, the UDF+PSF for departing passenger is Rs 204 which is increasing to Rs 250, whereas there is no fee levied on passengers arriving, as on date. However, MIAL has proposed a fee of Rs 250 on arriving passenger to AERA to facilitate development activities at the airport.
In addition to the ₹300 crore expansion works inherited from AAI, MIAL is planning additional capex of over ₹500 crore over the 5 years to rectify the deficiencies, meet compliance requirements, essential safety and security, requirements. The investments planned by MIAL will help cater to the forecasted demand of the traffic.
MIAL is making concerted efforts to connect the city to the rest of India by promoting new routes and new destination in partnership with its stakeholders. With modernization of the airport underway, the proposed developmental projects, including recarpeting of the runway, and construction of a new terminal building and cargo terminal, is estimated to cost over Rs 800 crore. The tariff fixing body AERA has sought remarks from airways, passenger associations and enterprise jet operators to make the right decision for the larger good and purpose.