Bengaluru, Apr 16: Air passengers flying from Bengaluru's Kempegowda International Airport (BIAL) will now have to pay more for tickets. The Airports Economic Regulatory Authority of India (AERA), on Monday, increased the User Development Fee (UDF) charged at KIA after amending its previous order. The fee for domestic passengers will increase from ₹139 to ₹306 (little over 120%). International passengers will be charged ₹1,226, from the earlier rate of ₹558 (a 119.71% rise).
As per the AERA amendment issued recently, the charges have been revised for a limited period of time.
Bengaluru Airport has been asked to collect the revised UDF for a limited time period of four months. The revised charges will be applicable for tickets bought from April 16 to August 15, 2019, after which the airport will revert to the former UDF rates.
Last year in September the user development fees (UDF) was reduced (to Rs 558 for international flights and Rs 139 for domestic ones).
The regulatory authority has also asked the airport to maintain a separate bank account wherein the excess UDF collections, together with any income viz interest thereon shall be deposited and maintained. The funds from the said bank account will only be used for the purpose of Capital Expenditure for the expansion project and after all the other sources of funding are exhausted.
According to Bengaluru International Airport MD and CEO Hari Marar, the revision of UDF would give the airport a much need relief since a massive expansion plan is underway to cater to the growth of the aviation sector in the country. The expansion project is being carried out at a cost of Rs 13,000 crore. An FE report cited Marar saying that as mandated by AERA, the amount collected from the increase in UDF, will be deposited in a separate bank account and it will only be used to fund the airport's ongoing infrastructure expansion.
Kempegowda International Airport India's is third largest airport as of now and it is one of the busiest airports in South India. The airport is set to get a major infrastructural upgrade. The upgrade will include a second runway, new terminal, access roads, internal road and more. It will be transformed into a multi-modal transport hub.