IATO Andaman Chapter Welcomes Decision of AAI to Introduce Incentives to Promote International Flight Operations

Sri Vijaya Puram, June 1: The Indian Association of Tour Operators (IATO) – Andaman Chapter warmly welcomes the recent decision by the Airports Authority of India (AAI) to introduce substantial incentives aimed at promoting international scheduled operations from Sri Vijaypuram Airport.

As per the announcement, AAI will completely waive the User Development Fee (UDF) for the first year, and offer significant concessions of 85% in the second year and 65% in the third year. This initiative is expected to result in savings of approximately INR 1.5 lakh per international flight, creating a highly favorable environment for international carriers.

We extend our heartfelt gratitude to the Hon’ble Lieutenant Governor, Sri Bishnu Pada Ray Hon’ Member of Parliament, the Chief Secretary, the Secretary Civil Aviation, the Director of Civil Aviation, and the Airport Director of Sri Vijaypuram Airport for their proactive and persistent efforts to improve international air connectivity to the Andaman & Nicobar Islands.

These new incentives—combined with the in-principle approval from the Ministry of Defence for the waiver of landing charges and the continued exemption of VAT on Aviation Turbine Fuel (ATF)—mark a major milestone. We are optimistic that airlines, who now stand to benefit by up to INR 1.5 lakh per flight, will be encouraged to commence international scheduled operations from the airport.

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.

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