Passengers at KIA to pay 67% less UDF from September 16

BENGALURU: It’s official. From September 16, passengers using Kempegowda International Airport will pay a lower User Development Fee. The Airports Economic Regulatory Authority of India slashed it for international and domestic passengers by 67% as per an August 31 order.

The UDF for international passengers will come down to Rs 400 from Rs 1,226, and to Rs 100 from Rs 306 for domestic passengers. However, these rates will be in effect till March 31, 2019. From April 1, 2019 to March 31, 2020, international passengers will pay Rs 558 and domestic flyers will be charged Rs 139.

UDF for int’l flyers to be Rs400, domestic passengers Rs100

It’s the first time UDF will be slashed at KIA but it’s not clear if airlines will pass on the benefit to passengers by reducing ticket cost.

It will go up to Rs 716 (international passengers) and Rs 179 (domestic) from April 1, 2020. AERA also decided to reduce landing, parking and housing charges imposed by BIAL by up to 60%.

AERA chairman S Machendranathan said they finalised these rates after consulting various stakeholders.

Both Bangalore International Airport Limited (BIAL) — which operates KIA — and the Karnataka government, which holds a stake, had opposed reduction in UDF when AERA first mooted it.

Earlier, AERA had proposed reducing UDF by 74% with Rs 316.8 and Rs 79.2 for international and domestic passengers, respectively. While citizens’ groups like Bangalore Political Action Committee wanted UDF to waived completely, BIAL and the government wanted to continue the existing tariff for the second control period.

BIAL MD and CEO Hari Marar recently said if UDF collected from passengers is slashed, BIAL may drop the tunnel project due to lack of funds.

The UDF is revised once in five years based on investment in an airport and it was last revised at KIA in 2015. On February 20, TOI had reported that AERA had objected to a proposal to raise fund for the Namma Metro airport connectivity project by collecting additional UDF from air passengers before the commencement of commercial operations of Namma Metro towards airport.

Who is exempted

Children (under two years), holders of diplomatic passports, airline crew, persons travelling on official duty on IAF aircraft, persons travelling on official duty for UN peacekeeping missions, transit/transfer passengers, passengers departing from Indian airports due to involuntary rerouting due to technical problems or weather conditions.