New aviation regulator to decide on development fee: Patel

New Delhi, July 9

The new aviation regulator, Airport Economic Regulatory Authority (AERA), will settle all contentious issues in the aviation sector, including the airport development fee issue, Civil Aviation Minister Praful Patel said here Thursday.

Replying to questions in parliament, Patel said: "AERA has been constituted by an act of parliament and has started functioning. It will now decide if the development fees are relevant or not."

At present passengers are being charged development fees at Delhi and Mumbai airports and users development fees (UDF) at the new airports in Bangalore and Hyderabad.

Patel added that the Airports Authority of India (AAI), which is upgrading the Chennai, Kolkata and a few other airports, will charge development fee in these airports once the work is complete.

While development fee is charged for raising funds by the airport developer to upgrade airport facilities, UDF is charged at new greenfield airports.

When parliament members asked whether the government would scrap UDF at Bangalore and Hyderabad airports, Patel said it was being "charged as per the contract between the government and the airport developers".

He added that the airport developers needed more capital to upgrade airports.

Last updated on Jul 9^th, 2009 at 14:14 pm IST--IANS

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