The Hindu : Front Page : BIAL allowed to collect UDF from domestic passengers

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Saturday, Jan 10, 2009
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BIAL allowed to collect UDF from domestic passengers

Special Correspondent

Starting January 16, they will have to pay Rs. 260 towards it

BIAL move to levy UDF on domestic passengers was opposed earlier
It had sought the Centre’s nod to collect
Rs. 675 per passenger

— A file photo

Passengers at the Bengaluru International Airport.

CHICKBALLAPUR: Domestic passengers departing from Bengaluru International Airport (BIA) will have to shell out a few hundred rupees more as the Ministry of Civil Aviation on Friday permitted the Bangalore International Airport Ltd. (BIAL) to collect an ad hoc user development fee (UDF) of Rs. 260 (including taxes) from domestic passengers starting January 16.

All domestic passengers departing from BIA should pay that fee irrespective of the date of booking or purchase of ticket, the Ministry announced in response to the domestic UDF application filed by the BIAL, the airport operator.

The UDF receipt can be obtained at the counters located in front of the departure hall of the terminal building at the airport, BIAL Chief Executive Officer Albert Brunner said in a press release.

The BIAL’s move to levy UDF on domestic passengers had earlier met with strong protests from different quarters.As the airport is located far away from the city, passengers have to spend at least Rs. 500 on taxis to reach the airport. The move to impose UDF had thus angered the passengers who were already feeling the pinch.

On the other hand, the State Government was also upset that the BIAL had not consulted it before sending the proposal to the Centre on UDF charges. The BIAL had urged the Centre to permit it to collect a domestic UDF of Rs. 675 per passenger. The Ministry of Civil Aviation is said to have fixed the ad hoc UDF after studying the audited project cost report submitted by BIAL to it in August. The report contained the revenue gap and the time taken to break-even, among other issues.

Mr. Brunner said the newly approved UDF was an ad hoc one and the final amount would be decided by the Ministry after further reviews by the regulatory body, which would be appointed by the Centre. “The decision to charge UDF has come more than seven months after we commenced commercial operations. UDF is a crucial revenue stream for us and although we have not been allowed to charge the amount we requested for, this is a beginning,” he remarked.

On the occasion of the airport completing six months of commercial operations in November last, Mr. Brunner had claimed that the delay in the Centre permitting the BIAL to collect domestic UDF was one of the major reasons for the company suffering a loss of Rs. 22 crore every month.

The BIAL had invested Rs. 2,273 crore in the design and construction of the airport. The contractual agreements specified the collection of domestic UDF from airport opening day whereas until now only international passengers were levied a UDF of Rs. 1,070, he said.

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