UDF at Chennai Airport May Be Discontinued; Flight Rates To Reduce

Flying out of Chennai is set to become cheaper as the Airports Economic Regulatory Authority (AERA) has recommended an end to collecting User Development (UDF) from next year. The recommendation comes in wake of reports suggesting that the money collected under UDF was not used to develop the city airport. AAI had applied for extending or revising the UDF till 2021 for Chennai airport.

Times of India reported AAI having collected between Rs 250 and 300 crores in recent years as UDF annually. AERA recommended AAI to discontinue collecting UDF as it failed to use the money it collected to develop the airport in the past five years.

At present, the UDF collected for international flights is Rs. 667 and for domestic flights it is Rs 166.

A stakeholders meeting that will happen next month could approve the AERA suggestion.

Featured Image Source: Murali Krishna Kumar

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