Passengers flying out of Bengaluru’s Kempegowda International Airport will pay a lower User Development Fee (UDF) from September 1, 2026, while those arriving at the airport will have to pay the fee for the first time, under a new aeronautical tariff structure approved by the Airports Economic Regulatory Authority of India (AERA).
Departure Fees Slashed
The UDF for a domestic departing passenger has been fixed at Rs 300, down from the existing Rs 550, while the fee for an international departing passenger will be Rs 997, compared with Rs 1,500 currently.
At the same time, AERA has introduced a UDF for arriving passengers. Domestic arriving passengers will be charged Rs 125, while international arriving passengers will pay Rs 426.
The revised tariffs will apply for the fourth control period from April 1, 2026, to March 31, 2031. The new UDF rates will apply to tickets issued on or after September 1, 2026, with the fee determined based on the passenger’s date of travel, according to the tariff order.
Incremental ARR Framework
The reduction in departure charges comes as AERA has, for the first time, implemented the incremental Average Revenue Requirement (ARR) framework for Bengaluru airport. Under the framework, the cost of certain high-value capital expenditure projects can be recovered from passengers only after the projects are completed, commissioned and put to use.
Previously, the cost of such projects could be factored into airport tariffs before the projects became operational, effectively allowing the airport operator to recover the cost from passengers ahead of completion.
AERA said the new approach would align tariff recovery with the actual availability and use of airport infrastructure, thereby protecting passengers from paying prematurely for assets that are not yet operational.
The regulator also said the framework would encourage the airport operator to complete and commission major capital expenditure projects on time and reduce the risk of over-recovery in case of delays, deferment or non-execution of planned projects.
Under the new framework, the cost of identified high-value projects will not be loaded into the airport tariff from the first year of the five-year control period. Instead, an incremental tariff will be levied from the date the respective assets are completed, commissioned and put to use.
The major projects covered under the incremental ARR approach include the East Cross Taxiway, Phase 2 of Terminal 2 and the Phase 2 apron at Bengaluru airport.
Domestic passengers account for around 84% of total passenger traffic at the airport.