- AERA has imposed an arrival fee at the airport for the first time, with charges of Rs 220 for domestic arrivals and Rs 440 for international arrivals, as per its order of August 24.
- The domestic departing fee will not stay at Rs 515 for the full period; it will rise to Rs 555 in 2027-28, Rs 620 in 2028-29, Rs 670 between April and October 2029, and then fall to Rs 415 from November 2029, staying below the existing Rs 750 throughout the control period.
- AERA has adopted an incremental Aggregate Revenue Requirement (ARR) approach, linking recovery of project-related costs to the actual completion and commissioning of major capital projects, preventing passengers from being charged upfront for large projects not yet operational.
- Landing charges have been rationalised to Rs 435 per metric tonne for domestic flights and Rs 630 per metric tonne for international flights for the initial period, and AERA has allowed a variable tariff plan structured as a landing-charge incentive mechanism to encourage airlines to expand networks and ramp up traffic.
The Airports Economic Regulatory Authority of India (AERA) has implemented significant changes to the user development fee (UDF) structure at Hyderabad's Rajiv Gandhi International Airport. The UDF for domestic passengers has been reduced by over 30%, from ₹750 to ₹515, effective September 1.
Additionally, AERA has introduced an arrival fee for the first time, setting it at ₹220 for domestic arrivals and ₹440 for international arrivals. This new fee structure is part of AERA's revised tariff order issued on August 24, which will remain in effect until March 31, 2031.12
For international departures, the UDF has been decreased to ₹1,030 from ₹1,500, which is below the ₹1,150 proposed by the airport operator, GMR Hyderabad International Airport Ltd (GHIAL). The revised charges will apply to tickets issued on or after September 1.
The domestic departing fee is set to increase incrementally, reaching ₹555 in 2027-28, ₹620 in 2028-29, and ₹670 between April and October 2029, before dropping to ₹415 from November 2029. AERA has adopted an incremental Aggregate Revenue Requirement (ARR) approach, linking airport charges to the completion of major capital projects, thus preventing upfront charges for projects not yet operational.678
GHIAL had proposed an ARR of ₹27,851 crore for the fourth control period, but AERA considered a baseline ARR of ₹11,683.49 crore, translating to a baseline yield per passenger of ₹426.39. This baseline formed the basis for determining UDF and other charges.
Landing charges have also been rationalized to ₹435 per metric tonne for domestic flights and ₹630 for international flights. AERA has introduced a variable tariff plan to incentivize airlines to expand their networks and increase traffic at the airport.91011
“The domestic departing fee will rise to Rs 555 in 2027-28, Rs 620 in 2028-29, and Rs 670 between April and October 2029, then fall to Rs 415 from November 2029. AERA also rationalized landing charges to Rs 435 per metric tonne for domestic flights and Rs 630 for international flights.”
Daily Pioneer
