The AERA amendment was issued on 4 April'19, following the interim relief given by the Telecom Disputes Settlement and Appellate Tribunal’s ruling of 14 March'19. The move allowed the airport to collect revised charges for 4 months.
Prepare to shed extra if you are flying from Bengaluru Airport over the coming months! Based on an Airport Economic Regulatory Authority (AERA) amendment, the User Development Fee (UDF) at the Kempegowda International Airport in Bengaluru (also known as KIAB or BLR Airport) has been revised. The AERA amendment was issued on 4 April 2019, following the interim relief given by the Telecom Disputes Settlement and Appellate Tribunal’s (TDSAT) ruling of 14 March 2019. The move allowed Bengaluru Airport to collect revised charges for a limited period of four months. As per the new order, which will come into effect from 16 April 2019, the UDF for domestic departures will be revised from Rs 139 to Rs 306 and the UDF for international departures will be increased from Rs 558 to Rs 1,226.
The revised charges will be applicable for air tickets procured between the period 16 April 2019 to 15 August 2019. After this date, the UDF at Bengaluru Airport will revert to the earlier rates. The additional funds collected by this move will be used to meet the capital expenditure of the expansion projects, says BIAL. Also, it will provide BIAL (Bengaluru International Airport Limited), the required financial aid for the implementation of these projects.
According to Hari Marar, MD and CEO, BIAL, the revision of UDF would give BIAL the much need relief as the airport is in the midst of a massive expansion plan in order to cater to the growth of the aviation sector in the country. The entire expansion project is being carried out at a cost of Rs 13,000 crore. Marar further informed that as mandated by AERA, the amount collected from the incremental increase in UDF, during these four months, will be deposited in a separate bank account, which will be used only to fund the airport’s ongoing infrastructure expansion.
The Kempegowda International Airport is currently the third largest airport in India and the busiest airport in South India. In the financial year 2017-18, the airport served 26.91 million passengers.