Port Blair Airport Gets Top AAI Incentives to Revive International Flights

A Major Boost for Andaman’s Global Connectivity

The Veer Savarkar International Airport in Port Blair is set for a global revival. The Airports Authority of India (AAI) has rolled out a generous incentive package across 13 airports, with Port Blair receiving the highest support. This move is designed to bridge the initial viability gap and encourage airlines to resume and sustain international flight operations from the region.

Incentive Highlights: UDF Waiver to Slash Airline Costs

According to Airport Director Devender Yadav, the scheme provides a full User Development Fee (UDF) waiver—₹709 per departing passenger—for the first year of operations. The second and third years offer 85% and 65% waivers, respectively.

◼ Estimated Airline Savings:
With a typical 180-seater aircraft, the airline could save nearly ₹1.28 crore per flight in the initial year—an impactful reduction aimed at restoring financial viability.

Why Port Blair Matters for Global Routes

Designated as an international airport in 2007, Veer Savarkar Airport briefly saw international services between Kuala Lumpur and Port Blair, initiated by AirAsia in late 2024. However, due to low load factors, these flights were discontinued by April 2025.

The new scheme signals AAI’s strong intent to re-establish these routes, backed by strategic coordination with the Union Territory administration.

A Second Chance with Better Readiness

Yadav emphasised that critical lessons from past operations have shaped better preparedness this time. Infrastructure, regulatory coordination, and cargo handling capabilities are being strengthened to ensure long-term sustainability.

He added, “This isn’t just about passenger flights—it’s about building a stronger gateway for tourism and trade in the Andaman & Nicobar Islands.”

Strategic B2B Opportunities for Travel Professionals

For B2B travel agents, consolidators, and corporate planners, this development unlocks new international product offerings tied to the Andaman Islands—one of India's most aspirational island getaways. With resumed air access, bulk travel, charters, and packaged inbound tourism from Southeast Asia could see significant revival.

Final Takeaway

With AAI’s bold incentive framework, Port Blair is poised to regain its international aviation status. For B2B travel and airline professionals, this move presents an opportunity to tap into a revitalised gateway to one of India’s most scenic regions.

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