labels: News reports, Airports
Ministry to settle policy guidelines for user development fees at airports news
05 July 2008

New Delhi: The issue of private airport developers levying user development fees (UDF) as part of their development and operational charges,a matter which has drawn flak for various reasons, may be resolved next week, on 11 July, with the Union civil aviation ministry holding a meet that is expected to frame a broad policy on the issue.

Currently, only two new airports, Hyderabad and Bangalore, are allowed to charge UDF and that too only from international passengers. This is allowed under contractual agreements that the government entered into with developers. Other airport developers, notably the AAI and the GVK Group, have been clamouring for permission to levy similar fees.

Also, the quantum of UDF that developers can charge needs to be looked into as well, with a set formula that will decide the outcome, or in an arbitrary manner, which is the current practice.

The 11 July meet is expected to frame broad guidelines for this levy.

UDF is an additional levy, over and above the airline ticket price, airport developers charge each passenger to set off their burden in modernising and developing the airport. Apart from Bangalore and Hyderabad, developers of airports at Delhi, Mumbai and Cochin are also keen to implement UDF.

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Ministry to settle policy guidelines for user development fees at airports