AAI Approves Incentive Scheme to Boost International Flights at Port Blair Airport

Image Source: Logistics Insider

The Airports Authority of India (AAI) has sanctioned a three-year incentive policy to increase international flight connectivity at Veer Savarkar International Airport, Port Blair. The move is expected to bring down the operational expenses of airlines and support tourism in the Andaman & Nicobar Islands.

Important Points of the Incentive Policy:

User Development Fee (UDF) Waiver: International flights from Port Blair by airlines will be waived 100% in the first year, 85% in the second year and 65% in the third year.
Financial Relief for Airlines: The scheme is expected to save airlines around ₹1.28 crore per flight, making international operations commercially viable.
Tourism & Economic Development: The project is intended to enhance passenger movement, develop local tourism, and enhance international connectivity.
Airport Infrastructure Development: Port Blair Airport, which was recognized as an international airport from 2007 onwards, has struggled with maintaining international flights. The scheme is meant to reinvigorate operations and bring in additional carriers.

Prospects for the Initiative

The AAI’s incentive scheme is a strategic move to position Port Blair as a key international gateway. By reducing operational costs, the initiative is expected to encourage airlines to introduce new routes, benefiting both travelers and the local economy.

Sources: Devdiscourse, Firstpost.