User development charges to be levied only on outbound international passengers

The Indian Government has said that the newly constructed international airports at Hyderabad and Bangalore may levy user development charges but only for outbound international passengers. This levy will enable airport operators to recover development costs. Both the airports will become operational next month.

The Hyderabad International Airport Ltd (HIAL) becomes operational on 16 March 2008, while the Bangalore International Airport Ltd begins operations on 30 March 2008.

While HIAL will levy a charge of $24.80 per international outbound passenger; BIAL will levy a charge of $22.40.

These Greenfield constructions will levy these charges according to a concession agreement the Government had originally signed with them, which allowed them to charge up to $18.80 per customer.

The airport operators, however, have opted not to introduce charges on domestic services for now.