AAI Offers Incentives to Boost Overseas Flights
AVIATION & AIRPORTS

AAI Offers Incentives to Boost Overseas Flights

To strengthen international air connectivity, the Airports Authority of India (AAI) has introduced a major incentive scheme across 13 airports, including Veer Savarkar International Airport in Port Blair, Andaman and Nicobar Islands. The scheme aims to bridge the viability gap for airlines during their initial three years of operation—often the most financially challenging phase.

According to Port Blair Airport Director Devender Yadav, the scheme includes a 100 per cent waiver on User Development Fees (UDF)—currently Rs 709 per departing passenger—for the first year. This will reduce to 85 per cent in the second year and 65 per cent in the third. Based on a standard aircraft load of 180 passengers, the savings could reach Rs 12.8 million per flight, offering significant support to carriers.

Designated an international airport in April 2007, Port Blair saw its first scheduled international flight by AirAsia from Kuala Lumpur on 16 November 2024. However, services were discontinued on 10 April 2025 due to low passenger turnout, making operations unviable.

“The incentive scheme is a timely intervention and will significantly boost tourism in the Andaman archipelago,” said Yadav. He confirmed that Veer Savarkar Airport received the highest incentive package among the 13 airports listed.

“We have learnt valuable lessons from the earlier AirAsia operations. With this support and improved preparedness, we are now ready for sustainable international services and even planning for cargo operations,” he added. He also thanked the Union Territory administration for supporting the initiative and helping achieve this breakthrough.

To strengthen international air connectivity, the Airports Authority of India (AAI) has introduced a major incentive scheme across 13 airports, including Veer Savarkar International Airport in Port Blair, Andaman and Nicobar Islands. The scheme aims to bridge the viability gap for airlines during their initial three years of operation—often the most financially challenging phase.According to Port Blair Airport Director Devender Yadav, the scheme includes a 100 per cent waiver on User Development Fees (UDF)—currently Rs 709 per departing passenger—for the first year. This will reduce to 85 per cent in the second year and 65 per cent in the third. Based on a standard aircraft load of 180 passengers, the savings could reach Rs 12.8 million per flight, offering significant support to carriers.Designated an international airport in April 2007, Port Blair saw its first scheduled international flight by AirAsia from Kuala Lumpur on 16 November 2024. However, services were discontinued on 10 April 2025 due to low passenger turnout, making operations unviable.“The incentive scheme is a timely intervention and will significantly boost tourism in the Andaman archipelago,” said Yadav. He confirmed that Veer Savarkar Airport received the highest incentive package among the 13 airports listed.“We have learnt valuable lessons from the earlier AirAsia operations. With this support and improved preparedness, we are now ready for sustainable international services and even planning for cargo operations,” he added. He also thanked the Union Territory administration for supporting the initiative and helping achieve this breakthrough.

Next Story
Infrastructure Urban

InsideFPV Delivers ₹10 Crore Kamikaze Drone Order Under MoD’s EPR Route

InsideFPV, a Surat-based drone technology manufacturer, has successfully executed a ₹10 crore defence contract to supply indigenous kamikaze drones under the Ministry of Defence’s Emergency Procurement Route (EPR). The company completed the delivery of hundreds of FPV kamikaze drone platforms within a rapid two-month timeframe, highlighting its ability to meet urgent military procurement timelines.The supply orders were fulfilled under the emergency procurement mechanism, which is aimed at fast-tracking acquisitions for immediate operational needs. InsideFPV’s quick execution reflects it..

Next Story
Infrastructure Energy

Vedanta Resources Secures Fitch Upgrade to ‘BB-’, Best Rating Since 2015

Vedanta Resources Limited (VRL), a global player in metals, oil & gas, critical minerals, power and technology, has received a credit rating upgrade from Fitch Ratings, marking its strongest bond rating in over a decade.Fitch has raised Vedanta Resources’ Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘BB-’ from ‘B+’, while maintaining a Stable Outlook. The agency also upgraded VRL’s senior unsecured rating, along with the ratings of US dollar-denominated bonds issued by Vedanta Resources Finance II Plc and guaranteed by VRL, to ‘BB-’.The upgrade represents Vedan..

Next Story
Real Estate

NAREDCO NextGen NCR Chapter Launched

The NAREDCO NextGen NCR Chapter was recently launched at Excelerate 2026 in Mumbai, marking a key step towards integrating emerging real estate leaders from the National Capital Region with the national platform. The initiative aims to promote sustainable and responsible urban development through collaboration and knowledge exchange.The event brought together young developers, entrepreneurs, and professionals from across NCR, including Noida, Gurugram, Ghaziabad, Faridabad, Bhiwadi, and Meerut. Discussions focused on urban development, finance, sustainability, innovation, and policy, emphasisi..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement