AAI introduces incentives at 13 airports to boost international connectivity

To promote international flight connectivity, the Airports Authority of India (AAI) has approved a mega incentive scheme at 13 airports which includes Veer Savarkar International Airport at Port Blair in Andaman and Nicobar Islands, an official said here. This scheme will be applicable for first three years of the operations to bridge the viability gap for the initial phase, which is a very crucial phase for the sustainability of operations.

Speaking to PTI, Port Blair Airport Director Devender Yadav said, "As per this scheme for the first year 100 per cent UDF (User Development Fees), which is Rs 709 per departing passenger will be waived off to the airline. For the second year, the incentive will be 85 per cent of UDF and for the third year incentive will be 65 per cent of UDF." Considering the flight load of 180 passengers, the incentive scheme has the potential of savings of Rs 128 lakh per flight for airlines, which is a significant amount to bridge the viability gap, he said.

Veer Savarkar International Airport was designated as an international airport on April 1, 2007 and the first scheduled international flight was started on November 16, 2024 by AirAsia from Kuala Lumpur to Port Blair.

But due to less passenger load the international operations were not viable for airlines and international flight operations were stopped from April 10, 2025.

"The incentive scheme for international flight operations by AAI management is a welcome move, as it is going to promote tourism significantly in the archipelago. It may be noted that Veer Savarkar International Airport got the maximum incentive among all the listed 13 airports," the airport director said.

"We have learned a lot of lessons from the previous international flight operations by AirAsia from Kuala Lumpur to Port Blair. Now, we are better prepared for sustainable international flight operations with this incentive scheme and readiness to swing international cargo operations. I would like to thank the UT administration for jointly taking up the viability of international flight operations and achieving a significant breakthrough in it," he added.