Tuesday, August 13, 2019

Bengaluru airport reduces User Development Fee, airfares might drop marginally

Starting Friday, passengers will pay marginally less for air tickets as the User Development Fee (UDF), which saw a hike in April this year, will revert back to its former rates. The revised UDF rates had come into effect for a period of four months from April 16 to August 15 after the airport tariff regulator Airport Economic Regulatory Authority (AERA) allowed Bengaluru’s Kempegowda International Airport (KIA) to hike the user development fee.
The UDF, which was revised from Rs 139 to Rs 306 for domestic departures and from Rs 558 to Rs 1,226 for international departures, will go back to the former rates starting August 16, officials from KIA’s operator Bengaluru International Airport Limited (BIAL) confirmed.
This, however, will not affect the ticket prices much.
A BIAL official told Indianexpress.com. “The dip in the UDF will not directly impact airfares as tickets are priced based on a dynamic pricing system followed by individual airlines, based on AERA guidelines. The UDF is a minor factor that affects the pricing and hence will not affect the ticket prices by and large,” the official explained.
The revised UDF charges will be in effect till March 31, 2020. UDF is levied on passengers by airports to recover the investment made by airports on various development-related works.
13/08/19 Ralph Alex Arakal/Indian Express

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