Sunday, September 02, 2018

Airport user development fee sees big cut, but benefit won’t be passed on to flyers

Bengaluru:  The Airports Economic Regulatory Authority of India (AERA) on Saturday massively slashed the User Development Fee (UDF) to about one-third of the existing fee for departing domestic and international passengers from the Kempegowda International Airport. However, the Bangalore International Airport Ltd (BIAL) which operates the airport, says the cut will not translate into any change in air fares for passengers as airlines follow a dynamic fare structure, an aspect confirmed by AERA.

Aircraft parking, handling and housing charges for flights using the airport too have been slashed substantially, a move that will provide a huge benefit to all airlines reeling under heavy losses.   The reduction in UDF has been effected with differential rates for the thre financial years until 2021. The biggest reduction has been effected for the seven months ending March 31 next year, with the fee for domestic passengers slashed to `100 from the existing `306 and for international passengers to `400 from `1,226 prevalent now. The subsequent financial years will have a slight increase over this fare with `139 and `179 for 2029-2020 and 2020-2021, respectively for domestic flyers. The corresponding UDF for international flights will be `558 and `716.
02/09/18 New Indian Express