Mumbai: Passengers flying out from Hyderabad’s Rajiv Gandhi International Airport will have to shell out 430 per ticket for domestic travel and 1,700 for international travel as user development fee (UDF) with immediate effect.

In an order dated 3 November, aviation regulator Directorate General of Civil Aviation (DGCA) said it has restored UDF at Hyderabad airport, run by GMR Infrastructure Ltd. UDF is a fee levied by airport operators to recover the money after the completion of certain upgradation works.

In April 2014, the tariff regulator had withdrawn UDF at the Hyderabad airport.

The latest order was posted on DGCA’s website on Wednesday. DGCA pointed out that the high court in Hyderabad had given an order in favour of the airport operator regarding collection of tariff and airport charges.

“Accordingly, UDF will be levied at Rajiv Gandhi International Airport, Shamshabad, at 430 per embarking domestic passenger (exclusive of service tax) and at 1700 per embarking international passenger (exclusive of service tax) with effect from 3 November 2015," DGCA said.

All other tariff/charges prevailing prior to Aera order dated 24 February 2014 shall remain unchanged, DGCA wrote.

Aera, or Airports Economic Regulatory Authority of India, is the tariff regulator for airports.

In 2014, Aera had asked the airport operator to follow the so-called ‘single till’ model for calculation of charges and not the ‘dual till’ model.

In the ‘single till’ model, all airport activities—aeronautical and non-aeronautical—are taken into account to determine airport charges. So airlines and passengers are charged less. This model, currently followed at the Hyderabad airport, is also followed in UK airports such as Heathrow and Gatwick.

In contrast, only aeronautical activities are considered under the ‘dual till’, or the hybrid model, which private airport operators prefer since it will fetch them higher revenue. Under the hybrid model, 70% of non-aeronautical revenues are also taken into account. This is the tariff model proposed for the upcoming Navi Mumbai airport. The privatized airports in Delhi and Mumbai also operate under the hybrid till model.

In June, GMR Infrastructure, whose unit GMR Hyderabad International Airport Ltd (GHIAL) runs the airport, had said the aviation ministry has asked the airport tariff regulator to adopt the so-called hybrid till model to set tariffs.

“With the change in guard at Aera, the regulator seems to have gone back on its earlier tariff order arrived on the basis of single till for Hyderabad airport," a person close to the development said, referring to the UDF restoration.

“While under the previous Aera chairman, till April 2014, Aera had launched a strong defence through the averments of additional solicitor general Indira Jaisingh, against the GMR Group’s attempt to levy UDF. In the recent and renewed hearings, the ministry of civil aviation and Aera, which were both respondents in the writ filed by GMR, chose to stay silent and not pass any instructions to the assistant solicitor general to contest the private airport operator’s petition to impose UDF," the person said.

He added that the result of the silence is the reintroduction of UDF for passengers embarking from Hyderabad.

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