Lucknow Airport: Adani proposes to hike UDF by over 500%

Lucknow: The Adani group owned Lucknow International Airport (LIAL) has proposed a steep hike in aeronautical charges like parking fees and landing fees from April 1. The fee hike will continue till April 1, 2025 to fund the ambitious development plan for the airport.

Adani group proposed raising UDF for domestic & intl departure

The Adani Group has proposed raising the UDF per domestic departure from Rs 192 to Rs 1,025 (excluding taxes). For international departure, the airport operator has planned to increase the fee from Rs 561 to Rs 2,756 (excluding taxes) until April 1, 2025. The airport charges User Development Fee (UDF) for each departing passenger, a charge levied by the airport operator on passengers for recovering the investment that is made on the development of the airport.

Adani proposed new tariffs to AERA

Adani Group has proposed these new tariffs to Airports Economic Regulatory Authority (AERA). The regulator will come out with the final tariff order which usually sees lower rates than the ones suggested by airport operators. The Lucknow airport has also proposed tariff hikes for domestic and international cargo handling services.

UDF paid directly by passengers, aero tariffs are levied on airlines

The user development fee is paid directly by the passengers while the aero tariffs are levied on airlines. The airline's airfares depend on the operating cost. Therefore, with this decision, the airfares are expected to go up in Lucknow-bound flights.

In 2020, the Airport Authority of India (AAI) handed over the Lucknow airport to the Adani group on lease for a period of 50 years.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)