Flying in and out of Visakhapatnam will become more expensive once the new Bhogapuram airport becomes operational later this summer, and commercial flights from the existing naval airbase cease. Domestic passengers departing from or arriving at Bhogapuram will pay Rs 835 and Rs 355, respectively, as a user development fee (UDF). For international travelers, the outbound fee will be Rs 1,255 and the inbound fee Rs 545, with taxes extra on all charges, according to the ad hoc tariff order issued by the Airports Economic Regulatory Authority of India (AERA).
UDF Structure and Comparison
The GMR-backed Visakhapatnam International Airport Ltd (GVIAL) had proposed a distance-based UDF for domestic passengers in three slabs: less than 500 km, 500-1,000 km, and over 1,000 km. The proposed UDF for outbound ranged from Rs 840 to Rs 2,300, while inbound ranged from Rs 380 to Rs 1,000. For international departures and arrivals, the proposed fees were Rs 3,200 and Rs 1,250, respectively.
The AERA, headed by S K G Rahate, opted for a simpler single UDF rate for domestic passengers and a much lower rate for international travelers at the new airport, which is being developed at a cost of about Rs 4,600 crore in its first phase. Higher charges for new infrastructure, compared to lower fees at older facilities where capital expenditure has been recovered over decades, are expected and are not unusual globally.
Transition from Existing Airport
“The existing airport in Visakhapatnam is a civil enclave currently owned and operated by the Navy (INS Dega), while the passenger terminal is operated by the Airports Authority of India. Commercial operations at the existing Vizag Naval Airfield will be stopped once operations commence at Bhogapuram International Airport,” states the AERA order.
This marks the first time in 18 years that an existing airport in a city will be shut after a new one opens. In 2008, Bengaluru and Hyderabad received new airports, leading to the closure of Begumpet and HAL airports for commercial operations. Since then, new airports have opened, such as Mopa in Goa in 2023, without stopping commercial operations at the existing Dabolim naval airbase. Last year and this month, Mumbai and Delhi NCR got second airports in Navi Mumbai and Greater Noida without shutting down existing facilities for commercial flights.
Reasons for Closure and Connectivity Concerns
When asked about the decision to close the Vizag naval airbase, a senior official recently stated that it was necessary to ensure the commercial viability of Bhogapuram. Following the experience of Greater Noida Airport, which opened on June 15, passengers can only hope that the state government ensures timely completion of connectivity infrastructure. Unlike Delhi NCR, where travelers still have the option of using Indira Gandhi International Airport if they find Greater Noida too far or poorly connected, Vizag flyers will not have that alternative. Bhogapuram will be their sole airport, regardless of connectivity issues.
