AAI's New Incentive Scheme Boosts Port Blair's International Connectivity

Port Blair, June 2 (PTI): The Airports Authority of India (AAI) has launched a comprehensive incentive scheme aimed at enhancing international flight connectivity across 13 airports, including the Veer Savarkar International Airport in Port Blair, Andaman and Nicobar Islands, an official revealed. This scheme is designed to support the initial three years of flight operations, ensuring the critical early phase is economically viable.

Devender Yadav, Director of Port Blair Airport, explained to PTI, "Under this scheme, we are offering a complete waiver on the User Development Fees (UDF) of Rs 709 per departing passenger in the first year. For the second year, a waiver of 85 per cent of UDF will be applied, followed by a 65 per cent waiver in the third year." With an assumed flight load of 180 passengers, airlines can potentially save Rs 128 lakh per flight under this scheme, significantly bridging the viability gap," he noted.

The Veer Savarkar International Airport was classified as an international airport on April 1, 2007, with its inaugural scheduled international flight inaugurated by AirAsia from Kuala Lumpur to Port Blair on November 16, 2024. However, the operation of international flights was curtailed after April 10, 2025, due to insufficient passenger demand making such services economically unfeasible for airlines.

"The AAI's incentive scheme is a strategic move to bolster tourism in the region," stated the Airport Director. "Veer Savarkar International Airport has been accorded the highest incentives amongst the 13 participating airports," he emphasized. "Through insights gained from previous international flights conducted by AirAsia from Kuala Lumpur to Port Blair, we are now better equipped to manage sustainable international flight operations, complemented by our readiness to support international cargo services. I extend my gratitude to the UT administration for their proactive role in addressing the feasibility of international flights and attaining a significant breakthrough," he added.