BENGALURU: With the Airports Economic Regulatory Authority of India (AERA) all set to announce the details of the reduced User Development Fee (UDF) it proposes for the Kempegowda International Airport, the Bangalore International Airport Limited (BIAL) on Wednesday made a strong pitch for continuing the existing fee charges for departing passengers. Top airport officials repeatedly emphasised that the reduction of the fee would not translate into an immediate reduction in air tickets.
Taking part in a media interaction inside the airport's premises, Managing Director and Chief Executive Officer of BIAL, Hari K Marar cautioned that reducing the UDF for the remaining 2.8 months of this control period (financial year 2016 to 2021) will result in "a massive spike in UDF" for the next control period (April 2021 to March 2026). "The fee of `306 being charged for domestic passengers presently is not hurting anybody.
"The same tariff needs to be maintained for the remaining 2.5 plus years," the CEO said. UDF is not separately listed as a separate charge but is incorporated in the overall cost of the air ticket. "Airfares are dynamic. It is widely misunderstood that reducing UDF will directly impact the ticket fare," he added. The housing, baggage handling, parking and UDF fall under the non-fare revenue and different charges get adjusted within the overall aeronautical tariff, he pointed out.
‘Metro connectivity should attract investors’
The absence of a mass rapid transport system to the airport has resulted in lack of response for its plans to commercialise its open lands, said Hari Marar. “If construction related to Metro begins, investors will get confidence and may invest near the airport.”
Suburban service proposed 5 years ago
The BIAL had proposed running of suburban rail services to airport via Yesvantpur and Yelahanka five years ago to the State government. “We were willing to build a railway station here,”the CEO said.
BIAL eyes commercial operations at HAL
Talks between BIAL and HAL to open up the latter for commercial operations are still in discussion stage, Marar said. “We are looking at taking part in it without any monetary expectations. HAL needs space for its own purposes,” he added.