Will New Airports in India add value to travelers

With the opening of new airport in Hyderabad from Mar 16, the developers of this airport GMR Hyderabad International Airport (GHIAL) are planning to introduce a stiff USD 25 (INR 1000) fee from passengers as User development fee (UDF).

No doubt it’s a world class airports with unmatched services and features, but the road infrastructure leading to airport is not ready, taxes in India are among the highest, domestic airline industry is bleeding with huge losses of over Rs.2500 crore and no respite to aviation industry in the recent budget. All this leads to further consolidation in Indian Air Space and increase in the fares with which the common man will not be able to cherish his dream of flying.

Initially, GHIAL is not charging UDF from domestic passengers and also not increasing the parking and landing charges at the new airport. This decision comes in the wake of reports that low-cost carriers (LCCs) like JetLite, SpiceJet and Simplifly Deccan (formerly Air Deccan) have decided to drastically cut their flight schedules to Hyderabad and other new airports like Bangalore as they feel that the stiff UDF will make domestic travel expensive making their flights unviable.
Rajat Nagpal (TravelVidya)