User fee cut likely to bring down Bengaluru airfares

The Airport Economic Regulatory Authority of India has proposed slashing the existing UDF for international and domestic passengers by nearly three-fourths from next month.

Published: 13th June 2018 06:16 AM  |   Last Updated: 13th June 2018 06:16 AM   |  A+A-

Indigo, flight, mumbai, roadside, vendor

Image for representational purpose only

By Express News Service

BENGALURU: The Airport Economic Regulatory Authority of India (AERA) has proposed slashing the existing User Development Fee (UDF) for international and domestic passengers by nearly three-fourths from next month. It will hold a meeting with all stakeholders in the city in this connection on June 18.

A consultation paper released by AERA on its website on May 29 has proposed these UDF fees from July 1, 2018 to March 31, 2019:  Rs 316.76 for departing  international passengers and Rs Rs 79.19 for departing domestic passengers.  

The present UDF paid by international passengers is Rs  1,226 while domestic users pay Rs 306 (service tax not included). The UDF is levied by airports towards passenger amenities and services.AERA has further proposed a UDF fee with a minor increase over what it has proposed for this period during the next financial year (April 1, 2019 to March 31, 2020): Rs 373.88 for international passengers and Rs 93.42 for domestic passengers.

Asked for its response,  a BIAL spokesperson said, “This is a consultation paper put out by AERA. All stakeholders will now submit their views on the paper, based on which a final tariff order will be issued by Airport Economic Regulatory Authority of India.”

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