Mangaluru Airport seeks hike in user development fee

Mangaluru: In a bid to develop existing infrastructure and provide a better user experience, the Mangaluru International Airport Limited (MIAL) has appealed to the Airports Economic Regulatory Authority of India (AERA) seeking a revision in aeronautical tariff for a period of 5 years.

The MIAL is pitching to levy a User Development Fee (UDF) on passengers flying in and out of Mangalore to provide the best travel experience.

"It is a move to not only provide the best-in-class experience to its users and the on-going expansion but also with identified new investments, which are necessary for safety, security, passenger convenience and optimal utilization of the airport", an official communique from MIAL said. Since 2009, the airport has not seen major improvement and expansion. Also, it has been 10 years since the last tariff revision for the Mangaluru Airport. It last happened in September 2010. "The levy of the fee will only result in a marginal increase in fares which would be compensated by the user experience of the world-class airport", the communique mentioned.

Currently, the UDF and Passenger Service Fee (PSF) for departing passengers is Rs. 204 which could increase to Rs. 250. Till date, there is no fee levied on passengers arriving. However, MIAL has proposed a fee of Rs 250 for arriving passengers to AERA to facilitate development activities at the airport.

In addition to the Rs 300 crore expansion works inherited from the Airports Authority of India (AAI), MIAL is planning additional capital expenditure of more than ₹500 crores over the next 5 years to rectify deficiencies while meeting compliance. Developing essential safety and security requirements are also on the cards. The investments planned by MIAL will help cater to the forecasted demand of the traffic. MIAL is making concerted efforts to connect the city to the rest of India by promoting new routes and new destinations in partnership with its stakeholders. With the modernization of the airport underway, the proposed developmental projects, including re-carpeting of the runway, and construction of a new terminal building and cargo terminal, are estimated to cost over Rs 800 crore. The tariff fixing body AERA has sought remarks from airways, passenger associations and enterprise jet operators to make the right decision in this matter.