GMR allowed Rs375 user fee per passenger at new Hyderabad airport

20 Aug 2008

Mumbai: GMR Hyderabad International Airport Ltd, developers and operators of the new airport at Hyderabad, has received government permission to charge a user fee of Rs375 each on all domestic outbound passengers from 22 August.

''Consequent to the approval received from the union ministry of civil aviation, GMR Hyderabad, the developer and operator of Rajiv Gandhi International Airport in Hyderabad will be levying a user development fee (UDF) of Rs375 per head to all domestic outbound passengers,'' the company said in a filing with the Bombay Stock Exchange.

The user fee would form part of the ticket issued to all passengers boarding at HIAL and for those who have not paid the fee in their ticket, it would be collected at the airport before issue of boarding pass.

''The levy of UDF has become necessary in view of the huge investments made by the GMR-led consortium for creating the world class facilities for the passengers who use the greenfield airport,'' GMR HIAL chief commercial Officer Viswanath Attaluri said.

The company says it has developed the first phase of the airport with an investment of Rs2,478 crore.

''The collection of UDF is as per the business plan approved by the union ministry of civil aviation prior to commissioning of airport operations and as per the terms and conditions in the financial closure of the project,'' Attaluri said, adding that the charging of user fee is a common feature levied globally on all greenfield airports.