Friday, June 15, 2018

Good news for flyers: Airfare for passengers flying out of Bengaluru set to plunge

New Delhi: Air tickets for passengers flying out of Bengaluru are set to go down with the airport regulator proposing a reduction of around 400% in the user development fee (UDF) paid by travellers.
The Airports Economic Regulatory Authority (AERA) has suggested a cut in the UDF at the Bangalore International Airport from the existing `306 per passenger, departing on domestic routes, to only `80, down to almost one-fourth. Passengers flying to international destinations may have to shell out `317 per head instead of `1,226 currently being levied, a cut of 386%. There is no UDF charge for arriving passengers at the Kempegowda International Airport.

The proposed tariff is likely to come into force from July 1 and would continue till March-end 2019 as per the consultation paper floated by AERA. The airport tariffs were due for renewal from April 2016 but took time to reach the rate determination stage. The exercise is being undertaken to set tariffs for a second control period ranging from April 1, 2016 until March 31, 2021.
Toronto-based Fairfax Financial Holdings controls the Bengaluru airport through its India-arm Fairfax India. In 2017-18, Bangalore International Airport (BIAL) served around 26 million passengers, including 4 million overseas travellers.
15/06/18 Financial Express