IATO Welcomes Major AAI Incentives to Boost International Flights from Sri Vijaya Puram Airport

Vikas Kumar

Sri Vijaya Puram, 31 May 2025

The Andaman Chapter of the Indian Association of Tour Operators (IATO) has welcomed the Airports Authority of India’s (AAI) recent announcement of substantial incentives aimed at promoting international flight operations from Sri Vijaya Puram Airport.

According to the AAI’s new policy, international airlines operating from the airport will benefit from a full waiver of the User Development Fee (UDF) for the first year. In the following years, the UDF will be reduced by 85% in the second year and 65% in the third year. These measures are expected to save international carriers approximately ₹1.5 lakh per flight, making the airport a more attractive hub for global operations.

The IATO has expressed gratitude to the Hon’ble Lieutenant Governor, Mr. Bishnu Pada Ray (Hon’ble Member of Parliament), the Chief Secretary, the Secretary of Civil Aviation, the Director of Civil Aviation, and the Airport Director of Sri Vijaya Puram Airport for their coordinated and persistent efforts to strengthen international air connectivity in the region.

In addition to the AAI incentives, the Ministry of Defence has granted in-principle approval for waiving landing charges. The ongoing exemption of Value Added Tax (VAT) on Aviation Turbine Fuel (ATF) further enhances the financial viability of launching international operations from the Andaman & Nicobar Islands.

“The establishment of international connectivity will undoubtedly open up new avenues for travel, tourism, trade, and economic development in the region, further integrating the Andaman & Nicobar Islands into the global network.”, A Press Release from ‘Mohamed H Jadwet, Chairman – IATO Andaman and Nicobar Chapter,’ said.

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