Regulatory Body Proposes 74% Cut In UDF At Bangalore Airport!

Passengers flying from the Bangalore Airport may soon have to pay less for their flight ticket.

The Airports Economic Regulatory Authority (AERA) has proposed a 74% cut in the User Development Fee (UDF) on both domestic and international flights.

User Development Fee is the tax that is levied on the passenger by the airport operator, to receive a fair share of return on the investment done for development of the airport.

Passengers currently pay a UDF of Rs 1226 for international flights and Rs 306 for domestic flights. AERA has proposed, that this fee should be reduced to Rs 316.8 and Rs 79.2 for international and domestic flights respectively.

AERA will conduct a stakeholder’s consultation meeting with Bangalore International Airport Limited (BIAL), various airlines and government officials on 18^th June 2018.

The meeting will be held to discuss about reducing the UDF for passengers, as well as reducing the landing, parking and housing charges imposed on airlines by 90%.

Reduction of landing and parking charges will result in lower costs for airlines, a benefit they may pass on to the passengers by reducing the airfare. However, aviation experts say that this may not happen immediately due to rising oil prices.

UDF is revised every 5 years by the AERA and the Ministry of Civil Aviation. The fee was last revised at the Bangalore Airport in 2015 and this is the first time that the UDF is being reduced. Currently, Bangalore Airport charges the highest UDF in India.

If all the stakeholders agree to the terms proposed by AERA, the new rates will be applicable up to 31st March 2020. However, from April 2020 the UDF may increase to Rs 416.22 and Rs 104 for international and domestic flights respectively.