Once the aviation sector opens up completely, passengers flying from Kempegowda International Airport (KIA), especially to international destinations, will find that their tickets have become costlier. They will have to shell out more User Development Fee (UDF), which has been increased. The new rates will come into effect on June 1 for passengers taking both international and domestic flights.
Bangalore International Airport (BIAL), in a press release on Saturday, announced that the Airports Economic Regulatory Authority of India (AERA) has permitted KIA to collect ₹839 from international passengers, an increase of ₹123. In comparison, domestic passengers will see a hike of ₹5 and will have to pay ₹184.
Earlier, the BIAL was charging ₹716 for passengers taking international flights, and ₹179 for domestic travellers. AERA has allowed BIAL to increase landing charges and UDF for the financial year 2020-21 to compensate the revenue loss caused by the abolition of Fuel Throughput Charge (FTC), said BIAL in the release.
The Ministry of Civil Aviation had issued an order on January 8, 2020 asking the AERA to direct all operators to discontinue the levy of FTC on aviation turbine fuel in all airports. This decision was taken to provide relief to airlines as fuel prices were shooting up at the time.
“It (Ministry) further directed AERA to compensate airport operators for this loss of revenue, as FTC was a regulated charge, by recalibrating other regulated charges, such as landing charges and UDF. In response, 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,” stated the release.
