AERA Cuts Hyderabad Airport Fee To ₹515 For Domestic Passengers

The Airports Economic Regulatory Authority (AERA) has reduced the user development fee for departing domestic and international passengers at Hyderabad's Rajiv Gandhi International Airport.

The new fees, effective September 1, are ₹515 for domestic passengers and ₹1,030 for international passengers. This reduction is part of the tariff order for the period 2026-2031, which was decided based on the incremental Aggregate Revenue Requirement (ARR) framework.

AERA linked the cost recovery through airport charges with the actual date of completion, commissioning, and putting to use of high-value capex projects planned for commissioning by the airport operator. The User Development Fee (UDF) for departing domestic passengers was fixed at ₹515 per passenger, lower than the proposed ₹580 and the existing ₹750.

Similarly, the UDF for departing international passengers was fixed at ₹1,030 per passenger, as against the proposed ₹1,150 and the existing ₹1,500. The landing charges have been rationalized to ₹435 per MT for domestic flights and ₹630 per MT for international flights.

The airport is operated by GMR Hyderabad International Airport Limited (GHIAL). AERA has also allowed a variable tariff plan (VTP) for the Hyderabad airport, which provides an incentive mechanism with benefits upon satisfaction of prescribed qualifying conditions.

AERA considered a baseline ARR of ₹11,683.49 crore against ₹27,851 crore sought by GHIAL for the fourth control period (2026-2031). This translates into a baseline yield per passenger (YPP) of ₹426.39, which has been suitably apportioned between landing & parking charges, UDF, and other airport charges.

The reduction in fees is expected to provide incentives to airlines to expand their network and ramp up traffic at the airport. This move is in line with AERA's aim to ensure that aeronautical tariffs remain cost-reflective, transparent, and non-discriminatory.

The decision is significant for air travelers, as it will lead to a reduction in the overall cost of air travel from Hyderabad. With the new fees in place, passengers can expect to pay less for their flights.

The reduction in fees is also expected to boost air traffic at the Hyderabad airport, as airlines may be encouraged to operate more flights due to the reduced costs. This, in turn, could lead to increased connectivity and more options for passengers.

In recent times, AERA has been actively regulating airport fees to ensure that they are reasonable and do not impose an undue burden on airport users. The reduction in fees at Hyderabad airport is a step in this direction.

Overall, the reduction in fees at Hyderabad airport is a positive development for air travelers and the aviation industry as a whole. It is expected to lead to increased air traffic, more connectivity, and reduced costs for passengers.

The move is also in line with the government's efforts to promote the aviation sector and make air travel more affordable for citizens. With the new fees in place, Hyderabad airport is expected to become a more attractive option for airlines and passengers alike.

In conclusion, the reduction in fees at Hyderabad airport is a significant development that is expected to have a positive impact on the aviation industry. It is a step in the right direction and is expected to lead to increased air traffic, more connectivity, and reduced costs for passengers.