UDF hiked for passengers from Kempegowda International Airport, tickets to get costlier

Air tickets from Kempegowda International Airport (KIA) will get costlier with the Airports Economic Regulatory Authority (AERA) allowing the airport to increase the User Development Fee (UDF) for both domestic and international air passengers.

For international passengers departing from KIA, the UDF has been increased from Rs 716 to Rs 839. For departing domestic travellers, the fee has gone up from Rs 179 to Rs 184 per passenger, a Bangalore International Airport Limited (BIAL) spokesperson said.

The increase in UDF will be applicable from June 1, 2020. Landing charges have also been hiked for the airlines. The UDF will have to be paid directly by the passenger as additional charge. The landing charge hike would entail higher cost for airlines. This is also likely to be passed on to the passengers as costlier tickets.

The Ministry of Civil Aviation (MoCA) had on January 8, 2020 issued an order to AERA, directing airport operators to discontinue the levy of Fuel Throughput Charges (FTC) on Aviation Turbine Fuel (ATF), in any manifestation, at all airports.

It had further directed AERA to compensate airport operators for this loss of revenue, as FTC was a regulated charge. This was to be done by recalibrating other regulated charges such as landing charges and UDF.

In response to this direction, AERA issued an order on May 26, 2020, allowing BIAL to increase Landing Charges and UDF for FY 2020-21 to compensate for the revenue loss, as a result of abolition of FTC.