AAI Offers Incentives to Boost Overseas Flights

04 Jun 2025 CW Team

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.

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