Synopsis: Under a new tariff plan, Hyderabad Airport has suggested the introduction of an arrival User Development Fee (UDF) and cut down the charges for departure. This article covers the new rules, how it is implemented, reasons and more.
Hyderabad’s Rajiv Gandhi International Airport from September 1st, 2026 will implement a fresh model for introduction of airport fee for passengers arriving at the airport, as part of a revised proposal for a fee for passengers submitted to the aviation regulator. The departure charge is proposed to be reduced while the arrival charge is proposed to be increased to rebalance the airport user charges and finance airport future expansion subject to the regulatory approval.
Proposed changes in passenger charges
The airport operator has suggested that the Airport User Development Fee (UDF) structure be changed for the upcoming tariff period with an addition of an airport arrival fee and reduction of departure fees.
What’s the reason for the airport’s proposal?
The plan is part of a tariff plan for the next control period of GMR Hyderabad International Airport Limited. The operator wishes to charge departing passengers as well as arriving passengers with part of the airport charge. The new fee structure will enable the airport to continue funding for current and future infrastructure upgrades, including a planned expansion costing ₹13,975 crore, that will lower the departure fee that passengers pay.
Are ticket prices set to go up?
The proposal doesn’t mean that there will be a significant rise in the cost of air travel in total. Rather, it aims to re-distribute airport costs, reducing the Airport User Development Fee (UDF) for departing travelers and placing a separate fee for incoming passengers. The eventual effect on ticket prices will be determined by the decision of the Airports Economic Regulatory Authority and how the airlines will pass on the approved fares.
Also read: Beyond Bengaluru Initiative: 4 Tier-2 Cities Emerging as Karnataka’s Next IT Hubs
How will the Airport fee be collected?
It is unlikely that passengers will pay a separate fare at the airport. Whether or not the proposed airfare is approved, the User Development Fee (UDF) will usually be added to the airfare and collected by the airline at the time the ticket is booked. The airline next pays the airport company the amount.
The charge will typically be reflected in the ticket fare breakup (then, as departure charges are currently collected, as a separate line item, like “UDF” or “Airport Charges”). The planned arrival fee is also likely to be collected in the same way.
Conclusion
In case the proposal is approved, The changes to the departure fees are to decrease in the future, but the new structure will enable the airport to accommodate airport expansion without significantly raising the total costs to travellers.
