Air tickets from Kempegowda International Airport (KIA) are all set to become more expensive. Airports Economic Regulatory Authority (AERA) has allowed the Airport to collect increased User Development Fee (UDF). This is applicable for both domestic and international air passengers. The airport has raised the user development fee (UDF) by 17% for departing international passengers, and 3% for domestic passengers.
As per a release from the Bangalore International Airport Limited (BIAL), the operator of the KIA, UDF for domestic passengers has increased from ₹179 to ₹184. And international passengers have to shell out ₹839. Earlier, UDF of ₹716 was the charge for international passengers flying from Bengaluru. Hence, the new rates will come into effect from June 1. (Source: The Hindu)
“The revised UDF for departing passengers at Kempegowda International Airport, Bengaluru is Rs 184 per pax (domestic) and Rs 839 per pax (international),” said an airport official. These charged by the Bengaluru airport are likely to be borne by customers.
Compensation of Losses for Airport
The Airport Economic Regulatory Authority (AERA) permitted the fee increase on May 26. This happened after the Ministry of Civil Aviation told airports to discontinue levy of Fuel Throughput Charges. Henceforth, these charges are on aviation turbine fuel from January 8, according to an official release from Bangalore International Airport Limited.
“In response to this direction, AERA issued an order on May 26, 2020. The order allows BIAL to increase Landing Charges and UDF for FY 2020-21. This is to compensate for the revenue loss, as a result of the abolition of FTC, pursuant to MoCA’s decision. This is increase applicable from June 1, 2020,” states the release.
Also, Urban Transportation expert Sanjeev Dyamannavar said the discontinuation of FTC will have no effect on airlines or airport operators (Source: The New Indian Express).”Finance Minister should reduce aviation fuel taxes for the next six to nine months,” he added.
