New Delhi: Citing “precarious financial situation,” the Covid-stricken Bangalore International Airport Ltd (BIAL) has sought a steep phase-wise hike in user development fees (UDF) starting this October till March 2026. It has proposed to increase domestic departing passenger UDF from the current Rs 217 to first Rs 450, then Rs 550 and finally Rs 555. Similarly the hike proposed for international passengers is from the current Rs 839 to Rs 1,350, then Rs 1,650 and finally Rs 2,220.
The increase have been sought to be implemented from October 1, 2021, to March 31, 2026, according to the “alternate” annual tariff proposal (ATP) submitted to the Airports Economic Regulatory Authority (AERA) for determining Kempegowda International Airport’s (KIA) charges from April 1, 2021, to March 31, 2026.
“For any travel happening between October 1, 2021, and March 31, 2022, UDF applicable will be based on the date of ticket booking. For any travel beyond March 31, 2022, the respective period UDF charges shall be based on date of travel,” BIAL CFO B A Rao has told AERA in a letter written on June 29, 2021, with the alternate tariff proposal.
Top BIAL sources told TOI the increase sought in aero tariff comes at a time when “Bangalore airport is about to complete and operationalise a massive Rs 13,000 crore expansion program.. recovery of this investment has to happen during a period when passenger traffic is at its lowest as a result of the ongoing pandemic. We are committed to completing the project and delivering a world class airport even in the face of strong headwinds in these challenging times."
Bangalore airport is about to complete and operationalise a massive Rs 13,000 crore expansion program amid passenger traffic due to the pandemic. We have remained committed to completing the project in these challenging times."
Bangalore Airport's communique to AERA says the authority’s traffic projections for it — domestic passengers growing from 2.8 crore in pre-Covid FY 20 by 1.7 times to 4.8 crore in FY 25 and international passengers returning to pre-pandemic times by FY 24 — “appear to be highly over optimistic.” In contrast, BIAL’s June 29 submission has updated traffic projections that sees domestic traffic at 3.8 crore in FY 25 and international climbing close to pre-Covid 46 lakh of FY 20 in FY 25 at 45 lakh.
04/07/21 Saurabh Sinha/Times of India
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