Mangaluru, Jan 14, 2023: The journey is more important than the destination. It is a very well-known fact that airports are the fundamental component for economic growth of a nation. Airports allow the economy and society to flourish and develop. To do so, airports need funds to develop itself to enhance holistic passenger experience.
In this connection, Mangaluru International Airport Limited had moved The Airports Economic Regulatory Authority of India (AERA) seeking revision in aeronautical tariff for a control period of 5 years from April 1, 2021, up to March 31, 2026. MIAL had pitched for revision of airport charges including user development fee (UDF) from passengers flying in and out of this coastal city to give them the best in-class experience.
This move will not only aid the on-going expansion, but also help with identified new investments, which are necessary for safety, security, passenger convenience and optimal utilization of the airport.
The airport has seen no major capital improvement and expansion since 2009. Also, 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. A case in example here are various PPP airports such as Delhi, Mumbai, Hyderabad, and Bengaluru.
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 prides itself in being the best airport in India and Central Asia for the past three consecutive years as adjudged by Skytrax World Airport Awards. This award is considered as one of the highest honors in the aviation and airport industry.
NEW TARIFF FROM FEB 1
AERA in its order has also specified 1st February 2023 as the effect date for the new charges. In the order, AERA has also mentioned charges for each of the subsequent financial years, that is, FY 2023-24, 2024-25 and 2025-26.
In addition to the ₹300 crore expansion works inherited from Airports Authority of India (AAI), Mangaluru International Airport Limited is planning additional capex of over ₹500 crore over the 5 years to meet compliance, essential safety and security, requirements. The investments planned by Mangaluru International Airport Limited will help cater to the forecasted demand of the traffic.
Mangaluru International Airport Limited 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 integrated cargo terminal, is estimated to cost over ₹800 crore.
The tariff fixing body had sought remarks from airlines, passenger associations and enterprise jet operators to make the right decision in the larger interest of passenger safety and experience.