User Fees for Bhogapuram Airport Set Between Rs 355 and Rs 1,255

Bhogapuram User Fee to Range from Rs 355 to Rs 1,255: AERA Ad Hoc Tariff Order

NEW DELHI: Air travel to and from Visakhapatnam is set to become more expensive with the operationalization of the new Bhogapuram International Airport later this summer. Once commercial operations commence at Bhogapuram, flights will cease at the existing Naval airbase in Visakhapatnam. Domestic passengers departing from Bhogapuram will pay a User Development Fee (UDF) of Rs 835, while those arriving will pay Rs 355.

For international travelers, the UDF has been set at Rs 1,255 for outbound passengers and Rs 545 for inbound passengers, excluding applicable taxes. These rates are part of the ad hoc tariff order issued by the Airports Economic Regulatory Authority of India (AERA). The GMR-backed Visakhapatnam International Airport Ltd (GVIAL) had initially proposed a distance-based UDF for domestic flights, with three slabs based on travel distance: less than 500 km, 500-1,000 km, and over 1,000 km. However, AERA opted for a simplified flat rate for domestic passengers and significantly reduced rates for international travelers.

The Bhogapuram International Airport is being developed at an estimated cost of Rs 4,600 crore in its first phase. Higher charges at new airports are a common global practice, reflecting the significant capital expenditure required for modern infrastructure, unlike older facilities where costs have been recovered over time.

The closure of the existing Visakhapatnam airport, currently operated as a civil enclave by the Navy (INS Dega) with the passenger terminal managed by the Airports Authority of India, marks a rare occurrence in Indian aviation. This is the first time in 18 years that an existing airport in a city will shut down following the opening of a new one. A similar transition occurred in 2008 when new airports in Bengaluru and Hyderabad led to the closure of the Begumpet and HAL airports, respectively.

In contrast, recent airport developments in India, such as Mopa in Goa (2023) and second airports in Navi Mumbai and Greater Noida, have not resulted in the closure of existing facilities. However, a senior official explained that shutting down the Visakhapatnam Naval airfield for commercial operations is essential to ensure the financial viability of Bhogapuram International Airport.

Passengers in Visakhapatnam will have no alternative airport once Bhogapuram becomes operational, making it crucial for the state government to address connectivity issues promptly. Unlike regions such as Delhi NCR, where travelers can choose between multiple airports, Bhogapuram will serve as the sole aviation hub for the city.