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 learnt 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.
India to develop 50 more airports in 5 years
Highlighting the growth of the Indian aviation sector, Union minister K Rammohan Naidu on Monday said the country aims to have 50 more airports in the next 5 years.
Currently, there are 162 airports in India and the number has more than doubled compared to 74 airports in 2014.
Speaking at the annual general meeting of the International Air Transport Association (IATA), he also said that the government’s regional air connectivity scheme (UDAN) democratised air travel and operationalised a total of 619 routes.
Efforts are also on to make India a global MRO (Maintenance, Repair and Overhaul) hub and the segment is projected to be worth USD 4 billion by 2031, Naidu said. Naidu also asked global players to collaborate with India for sustainable aviation fuel production as he emphasised the importance of decarbonisation.
India is one of the world’s fastest growing civil aviation markets.