The User Development Fee (UDF) has been slashed for passengers transiting through the Kempegowda International Airport from August 16. Simply put, the 120% hike in UDF levied for four months from April 15, now goes back to the old rates.
Both domestic and international passengers had paid the higher UDF from April 16, after Bangalore International Airport Limited (BIAL) increased the fee as proposed by the Airport Economic Regulatory Authority (AERA).
The UDF for domestic departures had been revised to Rs 306 from Rs 139. For international departures, the fee was hiked to Rs 1,226 from Rs 558.
BIAL had maintained that the additional funds collected would only be used to meet capital expenditure of the expansion projects.
However, the reduction in UDF is likely to affect ticket fares only marginally. BIAL officials say airfares are calculated on the basis of a dynamic pricing system as followed by different airlines as per AERA guidelines.
Once the new UDF rates come into effect on August 16, no revision will be allowed by AERA till March 31, 2020.
During the consultation process, BIAL had sought a higher UDF to fund its massive Rs 13,000-crore infrastructure expansion project.
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