Bangalore: The land available for commercial development in Kempegowda International Airport (KIA) has become contentious with some stakeholders urging the Airport Economic Regulatory Authority (AERA) to consider its value before reviewing the current user development fee (UDF) paid by passengers.
At present, the GVK-led Bangalore International Airport Ltd. (BIAL) is charging an UDF of Rs. 260 from departing domestic travellers and Rs. 1,070 from international passengers. It has approached AERA seeking an increase in UDF and tariff for other services to fund its future expansion plan. In response, AERA initiated a consultation process.
As per the submission made by the State government to AERA, BIAL has been given 4,008 acres with the aim of catering to 50 million passengers (5 crore) per annum. At least 720 acres are available for non-aeronautical, or commercial, activities.
In the present arrangement, all revenue from aeronautical services is considered for determining user charges. This is the single till model originally proposed by AERA. Now, AERA is open to a hybrid till model under which all revenue from aeronautical and 40 per cent from non-aeronautical services will be considered.
24/03/14 The Hindu
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At present, the GVK-led Bangalore International Airport Ltd. (BIAL) is charging an UDF of Rs. 260 from departing domestic travellers and Rs. 1,070 from international passengers. It has approached AERA seeking an increase in UDF and tariff for other services to fund its future expansion plan. In response, AERA initiated a consultation process.
As per the submission made by the State government to AERA, BIAL has been given 4,008 acres with the aim of catering to 50 million passengers (5 crore) per annum. At least 720 acres are available for non-aeronautical, or commercial, activities.
In the present arrangement, all revenue from aeronautical services is considered for determining user charges. This is the single till model originally proposed by AERA. Now, AERA is open to a hybrid till model under which all revenue from aeronautical and 40 per cent from non-aeronautical services will be considered.
24/03/14 The Hindu
