A user development fee (UDF) is usually charged by airports to fund the airport’s construction and future growth. UDF is regulated by the Airport Economic Regulatory Authority (AERA), and any changes in UDF needs to be approved by this regulatory body. Bengaluru International Airport Limited (BIAL) slashed UDF by around 60% in September 2018. At that time, BIAL provided a timeline for a moderate increase in UDF until March 2021. But there is a change in that plan.
BIAL has just announced a massive increase in UDF following approval from AERA. The revised fees will be applicable on all tickets bought for four months from April 16 till August 15, 2019. From August 15, 2019, UDF will be back to the original level.
The revised UDF per passenger out of Bengaluru airport is
- INR 306 for domestic departures, up from earlier INR 139
- INR 1,226 for international departures, up from earlier INR 558
Planned Bangalore airport terminal 2
The increase in UDF will help BIAL fund expansion plans. According to Hari Marar, MD & CEO, BIAL,
This incremental increase in charges would provide BIAL much-needed relief as we are in the midst of a massive Rs. 13,000 crore capacity expansion to cater to the stupendous growth of the aviation sector in India. We are thankful to TDSAT, AERA and the Govt. of Karnataka for their continued support for BIAL’s huge infrastructure outlay. As mandated by AERA, the money generated from the incremental increase in UDF, during these four months, will be deposited in a separate bank account and will be used only to fund the ongoing infrastructure expansion.
The INR 13,000 crore expansion project includes the development of a new terminal, a second runway, access roads, internal road infrastructure, more aircraft stands and so-on.
Bottomline
If you have any travel plans through the summer out of Bangalore, book now, or pay a few hundred rupees more tomorrow onwards for your next trip out of there.
Leave a Reply