Hyderabad Airport Tops India in Passenger Fee Charges
Travelers departing from Hyderabad now face the highest airport passenger fees among all major metropolitan cities in India. According to recently tabled Ministry of Civil Aviation data presented in the Rajya Sabha, Rajiv Gandhi International Airport (RGIA) currently levies the nation's most expensive User Development Fee (UDF).
Comparative Analysis of Airport Charges
RGIA charges domestic passengers Rs 750 per person as UDF for departures, which represents the highest rate among major airports nationwide. For international departures, the fee stands at Rs 1,500 per passenger.
In comparison, Kempegowda International Airport in Bengaluru imposes a domestic UDF of Rs 550, while its international charge matches Hyderabad at Rs 1,500. However, India's busiest airports in Delhi and Mumbai maintain significantly lower rates:
- Delhi's Indira Gandhi International Airport: Domestic passengers pay Rs 129 for embarking and Rs 56 for disembarking, while international travelers pay Rs 650 for embarking and Rs 275 for disembarking.
- Mumbai's Chhatrapati Shivaji Maharaj International Airport: Domestic flyers are charged Rs 175 for embarking and Rs 75 for disembarking, with international passengers paying Rs 615 for embarking and Rs 260 for disembarking.
Purpose and Collection of Passenger Fees
The Airports Authority of India (AAI) explains that the UDF, also known as the passenger service fee (PSF), is collected as part of airfare and remitted directly to airport operators. For greenfield airports like Hyderabad and Bengaluru, these fees primarily serve to bridge viability gaps and recover substantial infrastructure investments.
Over the past four years, passengers flying from Hyderabad have collectively contributed nearly Rs 2,500 crore in UDF payments. Ministry data reveals that annual collections have experienced dramatic growth, skyrocketing from Rs 80 crore in fiscal year 2020-21 to over Rs 1,000 crore in FY 2024-25. This surge reflects both increased air traffic volumes and revised tariff structures implemented during this period.
Post-Pandemic Fee Escalation
The financial burden on passengers has intensified significantly following the pandemic. The domestic UDF at Hyderabad airport has risen sharply from Rs 281 per passenger in 2020-21 to the current Rs 750. For international departures, the fee has increased nearly fivefold—jumping from Rs 393 to Rs 1,500 during the same timeframe.
Regulatory Framework and Tariff Determination
The Centre established the Airports Economic Regulatory Authority of India (AERA) specifically to determine these tariffs at major airports across the country. Murlidhar Mohol, Minister of State for Civil Aviation, clarified the regulatory process, stating, "AERA determines aeronautical charges, such as landing and parking fees and the UDF, by considering factors like return on investment for aeronautical assets, operating expenditure, depreciation, and tax for a five-year control period."
He further explained that "the regulator aims to optimally balance the interests of service providers and end-users, ensuring the airport operator maintains and operates the facility with a reasonable return on investment." This regulatory mechanism seeks to create equilibrium between airport infrastructure sustainability and passenger affordability concerns.
The data underscores how Hyderabad's airport infrastructure development has been substantially funded through passenger fees, creating a unique financial model among India's major aviation hubs while raising questions about travel cost implications for millions of passengers annually.
