User fees from Feb 1 to raise cost of flights from Mumbai

Jan 17 2013, 02:58 IST
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SummaryFlying out of Mumbai is set to cost more with the Airports Economic Regulatory Authority allowing Mumbai International Airport Ltd to levy a user development fee on every departing passenger with effect from February 1.

However, the airport till now was only charging ADF and not UDF.

Aviation sector experts had predicted that the benefits from scrapping and capping ADF will be negated by an increase in UDF.

“Removing ADF may actually make the cost of air travel higher for the passenger,” Amber Dubey, partner and head-aviation at global consultancy firm KPMG had said earlier. “As per the project agreements, the operator is allowed to recover the entire funding gap plus returns on the debt or equity plus additional taxes, if any from the passengers. That is what will make airport tariffs higher,” he had said.

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