Hyderabad airport goes slow on user fee

Even after getting the civil aviation ministry's nod to levy user development fee (UDF) on international passengers, the GMR group-promoted Hyderabad airport has decided not to impose the levy for at least a month. GMR has already decided to exempt domestic passengers for the time being.

"We have decided to let issues like groundhandling charges stabilise before taking a call," said a Hyderabad airport executive. "We might charge it after a month or so," said the executive, without giving any reason.

The decision came as Bengaluru International Airport Ltd today announced that the fee for international passengers would be capped at Rs 1,070 inclusive of 12.5 per cent service tax. Hyderabad airport has been told to cap the fee for international passengers at Rs 1,000 inclusive of tax.

While Hyderabad airport has been told to waive the fee for domestic passengers for initial four months, Bangalore has been asked to do the same for three months. This means domestic passengers at both the airports will be charged the fee only by the end of July or the beginning of August.

The decision of Hyderabad airport comes after the International Air Transport Association (IATA) wanted the same UDF for international and domestic passengers.

"We feel there should be a common UDF because both international and domestic passengers use the same facilities," said an IATA executive.