Taking a strong view on the proposals of Airports Authority of India (AAI) to levy Airport Development Fee (ADF) on the passengers at the Chennai and Kolkata airports, Minister of Civil Aviation Ajit Singh has directed AAI not to propose any such fee on the passengers. Accordingly, the AAI has now submitted proposals to Airports Economic Regulatory Authority (AERA) without incorporating ADF.
The AERA will now determine only User Development Fee (UDF) and other tariffs like landing and parking charges etc. and no ADF will be charged from the passengers flying from Kolkata and Chennai airports even after the modernisation of the airport is completed. The modernisation and expansion of Kolkata and Chennai airports is taking place with the expenditure of Rs 2,325 crore and Rs 2,015 crore respectively.
Airport development fee forms a part of viability gap funding to meet construction costs while UDF is charged to cover operational costs.
Presently Rs 200 per domestic passenger and Rs 1,300 per international passenger are being charged as ADF at Delhi airport and Rs 100 per domestic passenger and Rs 600 per international passenger are being charged as ADF at Mumbai airport.
The AAI had submitted proposals to AERA earlier for levy of Development Fee of Rs 300 per embarking domestic passenger and Rs 1,000 per embarking international passenger at Chennai and Kolkata airports. The proposals were returned to AAI by AERA with the direction to undertake the user consultations and make fresh proposals indicating agreements/ views of the users. Shri Ajit Singh has directed AAI not to send any fresh proposals to AERA for levying Development Fee on passengers traveling from both these airports.
