Port Blair, Feb 23: Mr. Bishnu Pada Ray, the Member of Parliament, Andaman & Nicobar Islands, has written a letter to Mr. Amit Shah, the Home Minister and other concerned Ministries and authorities of A&N Administration seeking a waiver of landing charges and a 50% reduction in airport charges for Air Asia (Malaysia) flights operating on the Kuala Lumpur-Port Blair (Sri Vijaya Puram) route.
In his letter, he mentioned that the Andaman & Nicobar Islands marked a historic milestone with the commencement of their first and only international flight, connecting Kuala Lumpur to Port Blair. This major development, which began on November 16, 2024, has opened new avenues for tourism, trade and economic growth in the Union Territory of A&N Islands. However, despite its potential, the airline is struggling to maintain sustainable passenger loads, with an average occupancy rate of only 40-50%. Reports indicate that Air Asia may discontinue this route by April 2025 if financial challenges persist.
Mr. Ray, MP pointed out that while the A&N Administration had initially announced a waiver of landing charges to support international connectivity, the implementation has been delayed, resulting in Air Asia currently paying Rs. 56,317 per flight as landing charges. Moreover, the airline incurs considerable operational costs, including RNFC: Rs. 5,54,952 + taxes (collected by Airport Authority of India), TNLC: Rs. 49,397 + taxes (collected by the Airport Authority of India), parking charges: Rs. 1,500 per flight + taxes (collected by the Airport Authority of India), landing charges: Rs. 56,317 per flight + taxes (collected by Defence), UDF: Rs. 709 per passenger + taxes (collected by the Airport Authority of India) and PSF: Rs. 200 per passenger + taxes (collected by NASFT).
For January 2025 alone, Air Asia incurred a total expenditure of Rs. 26,25,469 (including taxes) for operations on this route, considerably impacting the airline’s ability to sustain services. Although the A&N Administration extended a 0% VAT benefit on aviation fuel for international flights, Air Asia has utilized only 10 KL from Port Blair due to lower fuel prices in Malaysia. Moreover, the Indian Oil facility in Port Blair has not provided the international fuel supply benefits available in other Indian cities, further disadvantaging the airline, said MP in his letter.
In light of these financial burdens, Mr. Bishnu Pada Ray, the MP has made an urgent appeal to the Home Minister to intervene in the matter urgently to resolve the issues, namely (1) Immediate waiver of landing charges for Air Asia’s Kuala Lumpur-Port Blair flights at Sri Veer Savarkar International Airport, Sri Vijaya Puram (Port Blair), as per the commitment of the A&N Administration (2) a minimum 50% concession on airport charges (RNFC, TNLC and UDF) for at least 24 months to ensure the airline’s operational viability.
Mr. Bishnu Pada Ray, the MP has further emphasized that without these financial relaxations, Air Asia may be compelled to discontinue its services, which would much hamper the progress of the islands and weaken international connectivity. Therefore, he urged the Minister to intervene and direct the concerned authorities to take immediate action to safeguard this vital international link.
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