The Airports Economic Regulatory Authority of India (AERA) has approved user development fees for the upcoming Bhogapuram International Airport in Visakhapatnam. According to the ad hoc tariff order, domestic passengers flying out will pay ₹835 and inbound passengers will pay ₹355 as user development fee (UDF). For international travelers, outbound passengers will pay ₹1,255 and inbound passengers will pay ₹545, with taxes extra on all flights.
The approved rates differ significantly from the GMR-backed Visakhapatnam International Airport Ltd (GVIAL)'s original proposal. As reported by The Times of India, the proposed UDF for domestic passengers ranged from ₹840 to ₹2,300 for outbound travel and ₹380 to ₹1,000 for inbound travel. International departure fees were proposed at ₹3,200 while arrival fees were set at ₹1,250. The AERA opted for a single UDF rate for domestic travelers and much lower rates for international passengers.
The new airport is being developed at a substantial cost of approximately ₹4,600 crore in phase I. According to the AERA order, the existing airport in Visakhapatnam is currently a civil enclave owned and operated by the Navy (INS Dega) while the passenger terminal is operated by the Airports Authority of India. Commercial operations at the existing Vizag Naval Airfield will be stopped once Bhogapuram International Airport operations commence.
This marks the first time in 18 years that an existing airport in a city is being shut after a new one opens. As reported by The Times of India, in 2008, Bengaluru and Hyderabad received new airports after which Begumpet and HAL were closed in those metros. Since then, new airports opened in Mopa (Goa) in 2023 without commercial operations being stopped at the existing naval airbase of Dabolim. Last year and this month, Mumbai and Delhi NCR got second airports in Navi Mumbai and Greater Noida without the existing ones being shut for commercial operations.
