Flying in and out of Visakhapatnam will become more expensive once the new Bhogapuram airport becomes operational later this summer and commercial flights from the existing Naval airbase cease, according to a report by Saurabh Sinha in Business Today. The Airports Economic Regulatory Authority of India (AERA) has issued an ad hoc tariff order setting user development fees (UDF) for the new airport.
User Development Fee Details
The AERA order, headed by S K G Rahate, fixes the UDF at Rs 835 for outbound domestic passengers and Rs 355 for inbound domestic passengers. For international travelers, the outbound fee is Rs 1,255 and inbound is Rs 545. All fees are subject to additional taxes. This is a single rate for all domestic flights, irrespective of distance.
GMR-backed Visakhapatnam International Airport Ltd (GVIAL), the airport developer, had originally proposed a distance-based UDF for domestic passengers in three slabs: less than 500 km, 500-1,000 km, and over 1,000 km. Their proposal for outbound ranged from Rs 840 to Rs 2,300 and inbound from Rs 380 to Rs 1,000. For international departures and arrivals, GVIAL had proposed Rs 3,200 and Rs 1,250, respectively. AERA rejected the slab system to avoid confusion and adopted the lower single-rate structure.
The new airport is being developed at a cost of about Rs 4,600 crore in phase I. Higher charges for new infrastructure compared to older facilities where capital expenditure has been recovered over decades are expected globally, the AERA order noted.
Closure of Existing Vizag Airport
The existing Visakhapatnam airport is a civil enclave currently owned and operated by the Navy (INS Dega), while the passenger terminal is operated by the Airports Authority of India. According to the AERA order, "Commercial operations at the existing Vizag Naval Airfield will be stopped once the operations commence at Bhogapuram International Airport."
This marks the first time in 18 years that an existing airport in a city will be shut after a new one opens. In 2008, Bengaluru and Hyderabad got new airports, after which Begumpet and HAL airports were closed for commercial operations. Since then, new airports opened at Mopa (Goa) in 2023 and at Navi Mumbai and Greater Noida in recent months without closing the existing airports (Dabolim, Mumbai's Chhatrapati Shivaji Maharaj International, and Delhi's Indira Gandhi International, respectively).
Connectivity Concerns
A senior official explained that the closure of the old airport is necessary to ensure the commercial viability of Bhogapuram. However, connectivity remains a major concern. After the experience of the Greater Noida Airport, which opened on June 15, passengers hope the state government ensures timely completion of connectivity infrastructure. Unlike Delhi NCR, where travelers still have the option of flying from IGIA if Greater Noida is too far or poorly connected, Vizag flyers will have no alternative — Bhogapuram will be their sole airport regardless of connectivity.
Implications for Air Cargo and Logistics
While the AERA tariff order focuses on passenger fees, the shift to a new airport carries implications for air cargo operations. The current Vizag airport handles belly cargo on passenger flights. Once operations move to Bhogapuram, cargo forwarders will need to adjust their pickup and delivery routes. The new airport's location and infrastructure may offer improved facilities for cargo handling, but the mandatory closure of the old base means no fallback option. Logistics operators serving the Visakhapatnam region should monitor the transition timeline and prepare for potential disruptions during the shift. The higher airport fees may also translate into marginally higher airfreight rates if airlines pass on costs, though the source does not specify cargo charges.
Watch List
- Timeline: Bhogapuram airport opening later summer 2025 – exact date to be confirmed.
- Connectivity: State government's progress on road/rail links to the new airport.
- Airline schedules: Which carriers will shift operations and any changes in cargo capacity.
- Cargo UDF: Whether AERA will set separate cargo UDF or if existing passenger UDF structure affects belly cargo pricing.
Sources:
