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AAI introduces incentives at 13 airports to boost international connectivity, focusing on Port Blair. This could revitalize tourism and local economy through significant fee waivers.

AAI Launches Incentives to Boost Air Connectivity

The Airports Authority of India's incentive scheme targets 13 airports to boost international flights, spotlighting Port Blair's potential to enhance tourism and economic activities.

The AAI's new incentive scheme aims to boost international flight connectivity at 13 airports. With significant fee waivers, the focus is on revitalizing Veer Savarkar Airport, enhancing tourism and the local economy.

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.

Covid impact: Dues of 4 major domestic airlines to AAI doubled

Dues of four major domestic airlines to the Airports Authority of India have more than doubled between February and July amid the coronavirus pandemic

Dues of four major domestic airlines &mdash; IndiGo, SpiceJet, GoAir and AirAsia India &ndash;to the Airports Authority of India have more than doubled between February and July amid the coronavirus pandemic.
However, the domestic airline that owes the highest amount of dues to the AAI is Air India. The national carrier&rsquo;s dues to the AAI increased by 2.75% to ₹2,258&nbsp;crore in this period.
An airline has to pay various charges like air navigation, landing, parking etc to the AAI to use facilities at any of its more than 100 airports.

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