To enhance international connectivity and bolster tourism in the Andaman and Nicobar Islands, the Airports Authority of India (AAI) has approved an incentive scheme aimed at reviving international flight operations at 13 airports, including Veer Savarkar International Airport in Port Blair.
This initiative is designed to bridge the viability gap for airlines operating on routes with lower passenger loads, ensuring the sustainability of such services during their initial years. The incentive scheme will be applicable for the first three years of operations, offering airlines substantial financial relief. For the first year, 100% of the User Development Fees (UDF), amounting to ₹709 per departing passenger, will be waived. In the second year, the incentive will cover 85% of the UDF, and in the third year, 65%. Considering a flight load of 180 passengers, this scheme has the potential to save airlines approximately ₹1.28 crore per flight, making these routes more financially viable and attractive to carriers.
Veer Savarkar International Airport, which was designated as an international airport in April 2007, witnessed its first scheduled international flight on November 16, 2024, when AirAsia commenced operations from Kuala Lumpur to Port Blair. However, due to lower passenger demand, international operations were suspended on April 10, 2025. The introduction of the AAI incentive scheme is expected to rejuvenate interest among airlines and facilitate the resumption of international services. The scheme has been particularly beneficial for Port Blair, as it received the highest incentive among the 13 airports included in the programme. This targeted support underscores the government’s commitment to enhancing connectivity to the region, which is a vital tourist destination. The incentive is expected to attract more airlines to consider Port Blair as a viable international route, thereby boosting tourism and local economies.
In addition to the financial incentives, the AAI has undertaken significant infrastructure upgrades at Veer Savarkar International Airport to accommodate increased international traffic. The airport’s category has been upgraded from grade III to grade II, allowing for more streamlined administrative processes and improved operational efficiency. The new integrated terminal building, inaugurated in July 2023, boasts a modern design and enhanced facilities, capable of handling up to 1,200 passengers during peak hours. The revival of international flight operations at Port Blair is anticipated to have a transformative impact on the region. It will not only facilitate greater movement of tourists but also promote cultural exchange and economic development.
The government’s proactive approach in addressing the challenges faced by airlines and providing necessary support through the incentive scheme reflects a strategic vision to position Port Blair as a prominent international aviation hub. As the aviation landscape continues to evolve, the success of this initiative could serve as a model for other regions seeking to enhance their international connectivity. By aligning infrastructure development with targeted incentives, the AAI is paving the way for a more connected and prosperous future for the Andaman and Nicobar Islands.
Also Read :Navi Mumbai Airport to open by August 2025
