Mumbai: Hyderabad International Airport Ltd plans to seek an increase of more than 60% on user development fees levied on passengers flying out of the airport.
The joint venture company promoted by the GMR Group is likely to submit a proposal to this effect to the Airports Economic Regulatory Authority next week, a person familiar with the matter said.
Hyderabad airport already levies the highest user development fees or UDF in the country, at Rs 430 per domestic ticket and Rs 1,700 for international travel.
GMR Group holds 63% share in Hyderabad International Airport Ltd while Malaysia Airports Holdings Berhad holds 11%, and the Airports Authority of India and Telangana government hold 13% each.
UDF is levied by Indian airports to fill the gap between the investment made to develop the infrastructure and the revenue earned from the project. The levy is calculated on a "cost plus" basis. This means that the passenger has to compensate the airport operator for its operating costs, depreciation and taxes plus a reasonable profit margin that covers its cost of debt and equity. The charges are up for revision every five years, known as control period.
To Read the News in Full 21/03/16 Anirban Chowdhury/Economic Times
The joint venture company promoted by the GMR Group is likely to submit a proposal to this effect to the Airports Economic Regulatory Authority next week, a person familiar with the matter said.
Hyderabad airport already levies the highest user development fees or UDF in the country, at Rs 430 per domestic ticket and Rs 1,700 for international travel.
GMR Group holds 63% share in Hyderabad International Airport Ltd while Malaysia Airports Holdings Berhad holds 11%, and the Airports Authority of India and Telangana government hold 13% each.
UDF is levied by Indian airports to fill the gap between the investment made to develop the infrastructure and the revenue earned from the project. The levy is calculated on a "cost plus" basis. This means that the passenger has to compensate the airport operator for its operating costs, depreciation and taxes plus a reasonable profit margin that covers its cost of debt and equity. The charges are up for revision every five years, known as control period.
To Read the News in Full 21/03/16 Anirban Chowdhury/Economic Times
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