GHIAL seeks permission from Centre for increasing UDF

According to a UNI report, both domestic and international passengers at GMR Hyderabad International Airport Limited (GHIAL) are likely to pay more, if the Centre allows GHIAL to increase the User Development Fee (UDF).  P Sripathy, CEO, GHIAL mentioned that the company has already sent proposals to the Ministry of Civil Aviation (MoCA) to put forward its case for the increase of UDF, for both domestic and international. However, Sripathy refused to indicate the quantum in the increase of UDF which GHIAL has asked the Centre.

Sources indicated that the GHIAL has asked for raising the UDF charges to Rs 2,700 for international passengers and around Rs 500 for domestic passengers to recover its investment made in the Greenfield airport in the wake of the recession. The Indian government had earlier permitted GHIAL to levy UDF of Rs 1,000 for international passengers and Rs 300 for domestic passengers.

GHIAL had handled 6.2 million passengers in the year 2008-2009 and projected a growth of around six per cent almost the same level of the last year and has also rescheduled the time line for breaking even- which will lead to withdrawal of UDF beyond the year 2012.