The Union Civil Aviation Ministry has asked the Bangalore International Airport (BIAL) not to charge user development fee (UDF) from domestic passengers during the first three months of operation.
Though the BIAL had proposed to slash the UDF by 50 per cent, the ministry was not too happy with the suggestion.
Following pressure from the ministry, the Hyderabad International Airport (HIAL), which had earlier announced waiver of UDF on domestic passengers for the first one month, has now decided to extend it to three months.
As per the Concession Agreement between BIAL and the Government of India, UDF can be levied by BIAL on departing international and domestic passengers. However, the quantum of fee was not specified in the agreement. It was to be determined at a level which would enable BIAL to recover its cost. The BIAL had proposed to levy a UDF of Rs 675/ and Rs 995/ on departing domestic and international passengers respectively.
“We have no problem with the $25 UDF on international passengers, but there should be no UDF on domestic passengers,” said joint secretary Union Civil Aviation Ministry K N Shrivastava.