120% user development fee at Kempegowda Airport

BENGALURU: Passengers will now have to shell out more money for air tickets booked between April 16, 2019 and August 15, 2019 with the User Development Fee (UDF) at the Kempegowda International Airport (KIA) being hiked by nearly 120%, for a period of four months.

With effect from April 16, 2019, the UDF for domestic departures at KIA will be revised from Rs 139 to Rs 306 and from Rs 558 to Rs 1,226 for international departures. Post August 15, the previous UDF rates will come into place, said Bangalore International Airport Limited (BIAL) authorities, on Monday.

While the revised UDF is expected to increase passengers’ spend, it has come as a relief for BIAL which is currently carrying out a massive, Rs 13,000 crore capacity expansion of the Bangalore international airport. The additional funds collected will only be used to meet capital expenditure of the expansion projects and will provide BIAL with required cash flows for implementation of these projects, said BIAL authorities.

"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", said Mr. Hari Marar, MD & CEO, BIAL”

The UDF at the airport has been revised based on an Airport Economic Regulatory Authority (AERA) amendment issued on April 4, 2019 to its earlier order No. 18/2018-19, following the Telecom Disputes Settlement and Appellate Tribunal’s (TDSAT) ruling of March 14, 2019, allowing BIAL to collect revised charges for a limited period of four months.