AERA has proposed that UDF be increased every year till March 2025
User Development Fee (UDF) collected from passengers at Kempegowda International Airport (KIA) will remain unchanged till March 31, 2022. At present, international passengers have to pay ₹839, while domestic passengers are charged ₹184.
In its order on aeronautical tariff for KIA, for the third control period from April 1, 2021 to March 31, 2026, the Airports Economic Regulatory Authority of India (AERA) has proposed that UDF rates be increased every financial year from April 2022 till March 2025. With effect from April 1, 2022, to March 31, 2023, UDF of ₹1,200 will be collected from the international passengers and ₹350 from domestic passengers.
In 2023-24, UDF will be ₹1,400 for international passengers and ₹450 for domestic passengers. In FY 2024-25, it will be ₹1,500 for international passengers and ₹550 for domestic passengers. This rate will be applicable from April 1, 2025, to December 2025. Between January 1, 2026 to March 31, 2026, it has been proposed that the fee be reduced to ₹1050 for international passengers and ₹385 for domestic passengers. AERA has also fixed landing and parking charges applicable for aircraft in the third control period.
BIAL disappointed
In its response to the revision of UDF, a spokesperson of Bangalore International Airport Ltd. (BIAL) said that the decision has come at a time when it is about to complete and operationalise a massive ₹13,300 crore expansion programme, focused on investing in critical capacity to cater to demand, including construction of a new runway, Terminal 2 and associated projects. “For 11 years, BIAL has reinvested its earnings to fund this capacity enhancement, hoping to provide strong earnings to shareholders once this project is completed. It is therefore disappointing to receive a tariff order which is likely to be seriously inadequate to meet our cash flow requirements and will also pose a challenge when it comes to meeting operational expenses. This is further exacerbated by the fact that during the period of the recovery of this investment, traffic is at its lowest as a result of the ongoing pandemic,” a spokesperson said.
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