Bengaluru airport reduces User Development Fee, airfares might drop marginallyhttps://indianexpress.com/article/cities/bangalore/bengaluru-airport-reduces-user-development-fee-airfares-might-drop-marginally/

Bengaluru airport reduces User Development Fee, airfares might drop marginally

The User Development Fee, which was revised from Rs 139 to Rs 306 for domestic departures and from Rs 558 to Rs 1,226 for international departures will go back to the former rates starting August 16.

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One among the fastest-growing airports in the world, the Bengaluru International Airport is the first Greenfield airport in India to be built as a public-private partnership. Express Photo

Starting Friday, passengers will pay marginally less for air tickets as the User Development Fee (UDF), which saw a hike in April this year, will revert back to its former rates. The revised UDF rates had come into effect for a period of four months from April 16 to August 15 after the airport tariff regulator Airport Economic Regulatory Authority (AERA) allowed Bengaluru’s Kempegowda International Airport (KIA) to hike the user development fee.

The UDF, which was revised from Rs 139 to Rs 306 for domestic departures and from Rs 558 to Rs 1,226 for international departures, will go back to the former rates starting August 16, officials from KIA’s operator Bengaluru International Airport Limited (BIAL) confirmed.

This, however, will not affect the ticket prices much.

A BIAL official told Indianexpress.com. “The dip in the UDF will not directly impact airfares as tickets are priced based on a dynamic pricing system followed by individual airlines, based on AERA guidelines. The UDF is a minor factor that affects the pricing and hence will not affect the ticket prices by and large,” the official explained.

The revised UDF charges will be in effect till March 31, 2020. UDF is levied on passengers by airports to recover the investment made by airports on various development-related works.

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Among the fastest-growing airports in the world, the Bengaluru International Airport is the first Greenfield airport in India to be built as a public-private partnership. KIA is operated by Bangalore International Airport Limited (BIAL), where private promoters hold 74 per cent (Fairfax: 54 per cent and Siemens Projects Ventures: 20 per cent) stake in BIAL, while the government holds the remaining 26 per cent (Karnataka State Industrial & Infrastructure Development Corporation Limited: 13 per cent, Airports Authority of India: 13 per cent).

READ| Bengaluru airport completes 11 years of operations, expects 65 million passengers per annum by 2025

The airport connectivity to the city is also set to improve as Namma Metro’s airport line is expected to be ready by 2023. Namma Metro’s airport corridor was earlier designed to be from Gottigere to Kempegowda International Airport via Nagawara. However, the route has been revised to include KR Puram-Nagawara-Airport for an entire 38-kilometres stretch now.

READ| Revised Bengaluru Metro route to airport likely to make ride longer for many

The Vayu Vajra (Volvo AC buses) run by the Bangalore Metropolitan Transport Corporation (BMTC) caters to several key locations in Bengaluru. It is among one of the cost-effective ways to reach the Kempegowda International Airport (KIA).

READ| BMTC Vayu Vajra AC Volvo buses: Full route map, timings of Bengaluru International Airport shuttle bus services