A 74 percent cut in the User Development Fee (UDF) for both domestic and international flights at the Kempegowda International Airport (KIA) in Bengaluru, has been proposed by the Airports Economic Regulatory Authority (AERA) of India.
The new consultation paper put by the AERA recommends the UDF to be reduced to Rs 316.8 and Rs 79.2 for international and domestic flights respectively, which could result in decrease in air ticket prices for passengers.
Currently, the KIA is among the highest charging airports in the country, where international bound travellers have to pay a UDF of Rs 1,226, while domestic travellers pay Rs 306.
"This is a consultation paper put out by AERA. All stakeholders will now submit their views on paper, based on which AERA will issue a final tariff order." - Bangalore International Airport Limited (BIAL) spokesperson to TNM.
The last day for all stakeholders, including BIAL, various airlines and government agencies, to respond, has been set as 25 June, 2018. If they all come to an agreement, the new UDF is set to be implemented from 1 July this year, bringing relief to many passengers.
The AERA also recommends reduction in parking and landing charges at the KIA. It also recommends an increase in the UDF from April 2019 till March 2020 to Rs 373 and Rs 93 for international and domestic flights. A further increase of Rs 416 and Rs 104 for April 2020 to March 2021 is proposed.
Earlier this year in February, the AERA had stepped in and cancelled the proposed hike in UDF for construction of the KIA-Nagavara metro line. The AERA had ruled out collection of a flat UDF from all passengers stating that the BIAL was not authorised to collect the UDF on services that are not yet provided.
The new KIA-Nagavara metro line is set to be ready in Phase II of the Bengaluru Metro in 2020, and connects the Kempegowda International Airport to the city in an elevated line stretching 29.6 km.
(Published in an arrangement with The News Minute.)
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