Bhogapuram User Fee Set Between Rs 355 and Rs 1,255 Following AERA Ad Hoc Tariff Order
Flying in and out of Visakhapatnam will become more expensive when the new Bhogapuram airport begins operations later this summer. The existing Naval airbase will cease commercial flights once the new facility opens. Domestic passengers will incur a user development fee (UDF) of Rs 835 for departures and Rs 355 for arrivals, while international travelers will pay Rs 1,255 for outbound flights and Rs 545 for inbound flights, excluding taxes.
User Development Fees Set by AERA
The ad hoc tariff order issued by the Airports Economic Regulatory Authority of India (AERA) outlines the UDF structure. The GMR-backed Visakhapatnam International Airport Ltd (GVIAL) initially proposed a distance-based UDF for domestic passengers, with fees ranging from Rs 840 to Rs 2,300 for outbound flights and Rs 380 to Rs 1,000 for inbound flights. For international travelers, the proposed fees were Rs 3,200 for departures and Rs 1,250 for arrivals. AERA opted for a simplified single UDF rate for domestic passengers and a lower rate for international travelers.
The new airport is being developed at a cost of approximately Rs 4,600 crore in its first phase. AERA’s decision reflects a common trend where new infrastructure incurs higher charges compared to older facilities, where capital expenditures have been recouped over time.
Closure of Existing Naval Airbase
The existing airport in Visakhapatnam, currently a civil enclave operated by the Navy, will stop commercial operations once the Bhogapuram International Airport opens. This marks the first instance in 18 years where an existing airport will close following the launch of a new one. Previous closures occurred in 2008 when Bengaluru and Hyderabad opened new airports, leading to the shutdown of Begumpet and HAL airports, respectively.
A senior official indicated that the closure is necessary to ensure the commercial viability of Bhogapuram. Unlike other recent airport openings, such as the new airport in Greater Noida, which still allows operations at the existing Indira Gandhi International Airport, Bhogapuram will be the sole airport for Visakhapatnam travelers.
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