How Adani-Operated Thiruvananthapuram Airport's Hike In UDF Impacts Passenger Traffic (Photo @TRV_Airport_Off)
Thiruvananthapuram International Airport operated by Adani Group recently increased the User Development Fee (UDF) by 50% from Rs 506 to Rs 770 for domestic travellers, announcing the hike to be effective from July 1 and surprisingly, stating that the present amount will be applicable only up to 2025, signaling a further rise in the upcoming years.
Notably, making travel more costlier through the airport, the hike is believed to adversely impact the number of passenger boarding from the capital city. The new hike was announced by the Airport Economic Regulatory Authority (AERA) as part of revised levies after Adani Group took over Thiruvananthapuram Airport in October 2021.
Read Also: Adani Group Acquires Majority Stake In News Agency IANS
The airport might possibly witness less traffic due to the hike, according to the experts. As per the tour operators, the fare from the Thiruvananthapuram is already higher due to several reasons. The new hike would further alienate the passengers from the airport, making Kochi a better alternative.
Mohan Ranganathan, an aviation expert and former commercial pilot opined that the new changes such as the UDF hike and the lower connectivity of the airport may lose passengers.
“When you make more changes, you are bound to lose passenger traffic, just like it happened in the case of Chennai airport when Bengaluru was working on its expansion,” the New Indian Express quoted.
Read Als0: 12 Companies Benefitted From Short Selling In Adani Group Shares: Report
Notably, among the four airports in Kerala, Kochi has the lowest UDF rate and better connectivity for international and domestic travellers. The user fee hike in the capital city might benefit Kochi Airport, analysts observe. Kochi increased its UDF to Rs 570 and Rs 270 for international and domestic sectors respectively, from its earlier rates of Rs 400 and Rs 180, the media house reported citing a spokesperson of the Cochin International Airport Ltd (CIAL).
Reacting to the hike, Thiruvananthapuram MP Shashi Tharoor said that the surge in UDF would certainly render Thiruvananthapuram International Airport a less attractive option for airlines and passengers given the considerably lower rates being offered by the nearest competing airport, Cochin International Airport Limited (CIAL). The Congress leader also wrote a letter to the Civil Aviation Minister and the Director of the Airport Economic Regulatory Authority expressing his concern over the hike in the user development fee. “When a private company provides a public service, it is all the more necessary to bear the public interest uppermost in mind,” the MP said, sharing his letter on his social media handle.
My letter yesterday to the Minister of Civil Aviation, copied to the Director of the Airport Economic Regulatory Authority, protesting the unjustified hike in the user development fee and other airport charges at the Thiruvananthapuram International Airport. Such decisions can… pic.twitter.com/g68sehEeEQ
— Shashi Tharoor (@ShashiTharoor) June 27, 2024
Justifying the hike, an airport operator said that the company was considering expansion with potential demand and operational requirements, adding that it is going to invest a hefty amount in the process.
