• Source:JND
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Airports UDF Hike: Amid skyrocketing air ticket prices due to India’s largest airline, IndiGo’s operational crisis, India’s busiest airports, like Mumbai and Delhi, are likely to revise the User Development Fees (UDF) after they received approval from the Telecom Disputes Settlement Appellate Tribunal (TDSAT).

TDSAT’s ruling allows airport authorities to recover a wider range of infrastructure costs from travellers, including investments in hotels, shopping complexes and other non-aeronautical facilities within the airport premises.

Air Travel From Mumbai, Delhi Airports May Get Costlier

If the tariff structure is implemented, travellers from Delhi and Mumbai airports might have to pay as much as Rs 3,000 more on their air tickets. The development has caused concern among passengers and experts in the field.

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Why Airports Are Increasing UDFs

As per a report by Business Standard, the Delhi and Mumbai airports argued before the TDSAT that they should include both aeronautical and non-aeronautical developments in their regulatory asset base, allowing airports to recover expenses through a user development fee that is charged from travellers who use airports.

The TDSAT has expanded the list of what comes under ‘airport infrastructure’, allowing airports to cover costs by increasing the UDF fees charged by passengers.

How Much More Will Passengers Have To Pay

Delhi Airport: The User Development Fee for domestic travellers might go up from Rs 129 to Rs 1,261 at Delhi Airport

Mumbai Airport: Domestic travellers from Mumbai airport will have to UDF fee as high as Rs 175 to Rs 3,856.

For international travellers, the UDF could be far higher, and passengers travelling in premium classes are most likely to be charged even more.

Airport authorities have increased the landing and parking charges for airlines, which are most probably to be passed on to passengers through higher airfare.

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What Is User Development Fee (UDF)

User Development Fees, or UDF, are hidden charges added to air ticket prices that act as a source of revenue for any type of development or modernisation carried out at airports. It is primarily charged in India.

UDF charges differ by airport, passenger class (economic or business) and destination (domestic or International).

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