1 week ago
AERA Cuts Hyderabad Airport Fees, Offers Airline Landing Incentives
AERA decides some of the fees charged at Hyderabad airport.
It lowered the fee for domestic passengers leaving the airport to ₹515.
The fee for international passengers leaving the airport will be ₹1,030.
These rates will apply from September 1, 2026, until March 31, 2031.
The airport operator, GHIAL, had asked for higher passenger fees and a larger revenue allowance.
AERA approved a smaller revenue requirement after reviewing the airport’s costs and income.
Some expensive airport projects will be included in fees only after they are finished and being used.
AERA also created discounts or incentives for airlines that add routes and increase traffic or cargo.
The regulator said this would support airport growth without placing an undue burden on passengers.
AERA set Hyderabad airport’s departing passenger fees at ₹515 for domestic and ₹1,030 for international passengers.
The new fees are below existing rates of ₹750 and ₹1,500, and GHIAL’s proposed rates of ₹580 and ₹1,150.
The tariff order applies from September 1, 2026, through March 31, 2031, with landing charges of ₹435 per metric tonne for domestic flights and ₹630 for international flights.
AERA approved a baseline aggregate revenue requirement of ₹11,683.49 crore, compared with GHIAL’s ₹27,851 crore request.
A variable landing-charge tariff plan will offer incentives for route expansion, new airlines, passenger traffic and cargo growth.
- Who
- The Airports Economic Regulatory Authority of India and GMR Hyderabad International Airport Limited, which operates Hyderabad’s Rajiv Gandhi International Airport.
- What
- AERA issued a tariff order reducing passenger User Development Fees, setting landing charges and approving a variable tariff plan for the airport.
- Where
- Rajiv Gandhi International Airport in Hyderabad.
- When
- The order takes effect on September 1, 2026, and remains in force until March 31, 2031; AERA announced it in a statement released on August 25.
- Why
- AERA linked cost recovery for certain high-value capital projects to their completion and use, while approving incentives intended to encourage airline routes, traffic and cargo growth.
AERA’s approved framework
GHIAL’s proposed framework
Passenger fees
AERA’s approved framework
AERA fixed domestic and international departing passenger fees at ₹515 and ₹1,030, respectively, below existing rates and GHIAL’s proposals.
GHIAL’s proposed framework
GHIAL proposed a domestic fee of ₹580 and an international fee of ₹1,150.
Revenue requirement
AERA’s approved framework
AERA approved a baseline aggregate revenue requirement of ₹11,683.49 crore after reviewing capital expenditure, operating costs, returns and non-aeronautical revenues.
GHIAL’s proposed framework
GHIAL sought ₹27,851 crore for the 2026–31 control period.
Capital-project recovery
AERA’s approved framework
AERA’s incremental ARR framework delays recovery of certain high-value project costs until the assets are completed, commissioned and put into use.
GHIAL’s proposed framework
GHIAL’s proposal sought a larger revenue requirement for the control period, including the operator’s requested costs.
Key facts
- Domestic departing UDF
- ₹515 per passenger, down from ₹750 and below GHIAL’s proposed ₹580.
- International departing UDF
- ₹1,030 per passenger, down from ₹1,500 and below GHIAL’s proposed ₹1,150.
- Domestic landing charge
- ₹435 per metric tonne.
- International landing charge
- ₹630 per metric tonne.
- Tariff period
- September 1, 2026, to March 31, 2031.
- Approved baseline ARR
- ₹11,683.49 crore, or ₹9,308.20 crore in present-value terms.
- GHIAL request
- ₹27,851 crore, or ₹20,025 crore in present-value terms, for the fourth control period.
- Baseline yield per passenger
- ₹426.39, apportioned among landing and parking charges, UDF and other airport charges.
Quotes
Airports Economic Regulatory Authority (AERA)
India’s airport tariff regulator
“AERA is of the view that the VTP provides an appropriate level of support for traffic development and route expansion while ensuring that aeronautical tariffs remain cost-reflective, transparent and non-discriminatory in accordance with ICAO principles, and do not impose an undue burden on airport users.”
deccanchronicle.com
freepressjournal.in
“The User Development Fee (UDF) for departing domestic passengers has been fixed at a reasonable level of Rs 515 per passenger, which is lower than the UDF of Rs 580 per passenger proposed by the airport operator, and is also lower than the existing UDF being levied at the airport of Rs 750.”
deccanchronicle.com
deccanchronicle.com
thehansindia.com
Sources
Flying From Hyderabad To Become Cheaper From September
AERA Cuts User Development Fee for Domestic, Int'l Passengers at Hyderabad Airport
AERA Cuts Hyderabad Airport User Development Fee To ₹515 For Domestic, ₹1,030 For International Passengers From September 1
AERA lowers Hyderabad airport tariffs, offers landing incentives to airlines
Hyderabad's Rajiv Gandhi International Airport cuts domestic fee to ₹515 from ₹750
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