Sri Vijaya Puram Airport in the Andaman & Nicobar Islands is set to become a significant player in international aviation, thanks to a series of strategic incentives introduced by the Airports Authority of India (AAI).
These measures aim to bolster the airport’s global connectivity and stimulate economic growth in the region. Under the new policy, international airlines operating from Sri Vijaya Puram Airport will enjoy a full waiver of the User Development Fee (UDF) for the first year. Subsequent years will see a reduction of 85% in the second year and 65% in the third year. This initiative is expected to save international carriers approximately ₹1.5 lakh per flight, making the airport a more attractive hub for global operations. The Andaman Chapter of the Indian Association of Tour Operators (IATO) has expressed strong support for these incentives, highlighting their potential to enhance tourism and trade in the region.
The IATO has also acknowledged the coordinated efforts of various stakeholders, including the Lieutenant Governor, Chief Secretary, and the Airport Director, in facilitating these developments. In addition to the AAI’s incentives, the Ministry of Defence has granted in-principle approval for waiving landing charges at the airport. Furthermore, 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 commencement of international flights from Sri Vijaya Puram Airport is expected to open up new avenues for travel, tourism, trade, and economic development in the region.
This move aligns with the broader vision of integrating the Andaman & Nicobar Islands into the global network, fostering sustainable growth and enhancing the islands’ position as a key regional hub. As the airport continues to expand its international connectivity, it is poised to become a vital gateway for travelers and businesses, contributing to the overall development of the Andaman & Nicobar Islands.
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