The Trivandrum International Airport (TIA) is the sixth airport in India to levy a user charge to bridge a capital deficit after Bangalore, Hyderabad, Jaipur, Delhi and Mumbai airports.“They say the fee is being imposed on the users because of the cost overrun. As per the scheduled time the International Airport terminal was to be commissioned a year back with a completed cost of 2.5 billion rupees.But its commissioning was delayed by a labor dispute, scarcity of construction sand and a delay in providing road connectivity. The cost of the project then escalated by 17.5 percent to 2.9 billion rupees.India’s airport regulator,Airports Economic Regulatory Authority (AERA), last week approved the Users Development Fees of 775 rupees on international passengers departing from the state-owned airport for a period of 10 years. The AERA order says “This ad-hoc determination would be reviewed at the stage of tariff determination for the first cycle and thereafter at such intervals as the Authority may determine from time to time.”According to Kerala Association of Travel Agents (KATA), the Airport Authority of India would collect an estimated 10.4 billion rupees over 10 years, adding it was an unnecessary burden on Gulf-bound passengers since revenue from non-aero and cargo services would be enough to make up any shortfall.
The Airports Economic Regulatory Authority (AERA) issued an order that the levy will kick in from the date of commissioning of the New International Terminal Building at the airport. “No UDF would be leviable on the domestic passengers. This ad-hoc determination would be reviewed at the stage of tariff determination for the first cycle and thereafter at such intervals as the Authority may determine from time to time.” Delhi and Mumbai International airports commenced levying development fee last year to bridge the capital deficit. State-owned Airports Authority of India (AAI) that operates in TIA had sought the authority’s approval to begin levying the airport tax or UDF, as “the project is not financially viable without levy of UDF and levy is proposed to bridge the viability gap.” The project cost increased from government approved Rs 245 crore to an estimated Rs 289 crore, as per AAI’ s latest estimates.
Kerala Association of Travel Agents said Thiruvananthapuram was the only airport developed without private participation where user fee was being imposed. There is no user fee at the Mangalore, Kozhikode, Chennai and Kolkata airports which were developed with funds allocated by the Civil Aviation Ministry.“At Rs.755 per passenger, the estimated annual revenue from the Thiruvananthapuram airport works out to Rs.80 crore. Taking the annual increase in passenger traffic into account, the revenue is estimated to touch Rs.900 crore in 10 years, an amount almost three times the project cost. The association said Non-Resident Keralites in Gulf countries would be the worst affected by the user fee. The new terminal nearing completion has been designed to handle only 16.5 lakh passengers every year, a number that falls short of the estimated traffic. Several airlines and customs have complained of being allotted insufficient space in the terminal. The fee for car parking and visitors gallery is more than that levied at other airports. The association said it would be forced to spearhead an agitation to force the government to withdraw the user fee.
AAI had made projections of Unit Development Fees charges by considering revenues from aeronautical side together with 30 per cent revenues from non-aeronautical side such as retail and commercial spaces.Airlines have been opposing rising user charges, contending that they add to cost of flying. Air India said that there should be a differential UDF for low-cost carriers such as Air India Express, and had warned that the international passenger may shift from the Trivandrum airport to the nearby Kochi airport. Not only that a large number of Keralites of the state’s southern districts and people from the southern districts of Tamil Nadu, a majority of whom are employed in the Middle-East countries, usethe airport here.According to KATA, around one million international passengers departed from this airport last year.The present airport can cater to only about 500 passengers at a time. But the new one would be able to handle up to 800 passengers. Actually the levying of UDF should be done only on private-public partnership airport like Banglore and Hyderabad whereas the airport in Trivandrum in is not a private one. Bangalore airport levies a user fee of Rs 1,070, while the Hyderabad airport charges Rs.1,000 from passengers. This is totally unacceptable because a Rs.200 crore new terminal was opened at Kozhikode last year and there is no user fee for that. Similarly, two years back the Kochi airport withdrew the Rs.500 user fee says KATA Assosiation President.
The State government along with the Trivandrum Development Society would file a plea questioning the Airport authority of India’s (AAI) move to levy the User’s fee for passengers departing from the airport, in the Airport Economic Regulatory Appellate Tribunal, Delhi.The government would make it clear in the Tribunal that the cost for the construction of new terminal has estimated to be Rs. 280 crores and more, and it wouldn’t be fair to levy user’s fee by AAI. The government would also argue that it was an unscientific approach on the part of AAI by deciding Rs. 775 as user’s fee.
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on May 29th, 2010I think usage fee is warranted for airports in general for the facilities they provide…like the one in Hyderabad and all….
But Kerala as always is a different case…..here we have 3 international airports in less than 600 kms distance…..so, if the rates are higher at trivandrum, people might just move on to Kochi for their travel needs…its not going to make things any better….trivandrum is loosing a major share of domestic flyers to kochi anyways…right?
on May 30th, 2010A fee of this kind has been implemented in other major airports.
Why do we take it for granted that the govt and govtal agencies are fairy godmothers to the residents of the state?
Just as we pay toll fees on newly built bridges, why not user fee for a terminal with state of the art facilities and something that every Keralite can be proud about.
Let us get out of this cribbing mode, particularly, if it means better facilities and a step towards the image makeover of the capital.
on May 30th, 2010No one says that implementing a user fee is not justifiable, but why so high. This happened because the project was not completed on time and so there was a subsequent increase in project cost. Numbers also show that AAI will probably collect three times the project cost in the stipulated 10 years. So why not apply a little bit of Math and common sense, and look for a solution to this problem.
on May 30th, 2010We Indians cant seem to agree on anything. There is always too much of discussion even when the solution to the problem is right in front of our eyes. Instead of wasting precious time we should sit together and sort these things out in a sensible manner.
Maybe, AAI can introduce a nominal user’s fee, say Rs. 250 /- instead of Rs. 775 / -.
Otherwise, the fall-out will be Trivandrum losing its passengers to Cochin.
on May 30th, 2010The fee should be a percentage of the ticket price. Fix the percentage such that the mean comes around whatever you want to charge per passenger.
This would make the user fee a bit more fair.
on June 1st, 2010I’m sure the aiport is beautiful but I believe it’s wrong to charge outgoing international passengers a tax of 775 rupees to subsidise costs for unexpected delays. We already have a visa cost of 2070 rupees. Tourism brings money into the ecomomy and should be encouraged not discouraged by additional costs. There are other beautiful airports in the world which dont charge tax
on June 1st, 2010The airport is beautiful But the usersfee is not good There are other beautiful airports in the world which dont charge tax ganesh,,sharjah
on June 26th, 2010Trivandrum airport has come to the headlines before its opening, because of the users fee. If authorities cannot waive the user’s fee, atleast they can reduce to IRs 200-Rs 250 per person as majority of the travellers are paying Visa fee in other countries and ticket prices are also very high. Those who are coming with family, will surely feel the pinch. All the Govt officials ( especially Trivandrum based) should do everything for the progress of Trivandrum, as it will benefit in someway or the other for everyone. By improving the tourism industry and have more shopping complex with quality products, more passengers will arrive at Trivandrum airport and airport authorities can collect back their revenue within 2-3 years. Those who has stayed in metro cities in India find Trivandrum as a depressive land due to the lack of good shopping centres and lack in communication skills of the locals there. New Delhi’s Indira Gandhi T3 terminal is also opening on 14th July 2010. So will PM be able to come. He is the right person to inagurate the new airport. Hope everything will go best for the passengers.
on July 2nd, 2010How many flights are opening from the new terminal ;;[NEW FLIGHTS]
on July 9th, 2010I am happy that a new terminal has been built in at the Trivandrum International Airport. The airport can change a nominal user’s fee of Rs 100 to Rs 150 to make up the deficit. However one should note that this airport is not built by private parties. The airport is still not well connected to Railway or a major bus terminus. Passengers still have to pay exorbitant fares and struggle after a long air journey to reach the railway station or main bus terminus. No decency coaches are running from the airport to reach other district locations (for example to Attingal, Neyantingara, Quilon, Karunagapally, etc). Passengers still have to depend on private taxis or other mode of transportation making traffic congestion and using more carbon foot prints.
The building project was delayed by the contractors for various reasons, but poor passengers have to pay the penalty and they have to bear the brunt. In fact the authorities should have collected the extra money spent from those contractors who have not met the terms of the initial contracts.
on July 10th, 2010The user fee is a good suggestion if the AAI would form a committee comprising travel agents and well meaning NRIs to review the income from UDF. It is also important to ensure that the fee is collected and deposited in an account that would only take the project funding. Moreover this fee should not be collected from the labour community using the airport, because it would break their back as Rs775 is BD7 — too much for the labourer who earns a monthly BD60 salary. Levy it on the white collar NRIs for whom this would not be a pain. In three to four years I am sure you still would have touched more than the construction cost. Another would be the introduction of a bond floated among the NRIs. Pretty sure here too the response would be overwhelming. But at the base of it all — no taxation without representation — so we know where the funds are going to.
on August 26th, 2010How many new flights are operating to trivandrum international airport,,,,,,, How many aditional service are operating to TRIVANDRUM SHARJAH SECTOR
on September 17th, 2010What is the rate and is to be paid in cash at the airport?
on September 18th, 2010It is a gret news that Trivandrum INTERNATIONAL airport is modernised and a new terminal has been built. Is this terminal directly connected by Inidan Railway, other public transport to nearby Districts and Kanyakumari.
How many NEW flights are directly connected and operating from London and Ameriaca to Trivandrum international airport?
Is the Airport Staff being trained to treat the customers with respect?
Are there any decent and large restaurants for the friends and relatives who accompany the passengers to receive them and to see them off?
on September 21st, 2010THE USERS FEE IS NOT GOOD ,,,,,,,BUT I”no AIRPORT IS WONDERFUL
on September 23rd, 2010This is absolutely brutal for the gulf as well as other sector NRI. In gulf countries we cannot say they rich enough to afford.If a family or 4 members they have to pay a huge amount.
on May 21st, 2011Moreover , the revenue of kerala is based on gulf money.In spite of helping them, they gain want to do the cruelty.
For a traveller who is staying at Shamkhumukham (where airport is located), he can reach cochi airport for less than rs150/- by rail..
on June 12th, 2011So what point in levying users fee of rs575/-?
We need clean & efficient airport , not luxury..thats all.