Burden for flyers
BENGALURU
Passengers flying out of Bengaluru will get no respite from steep airport charges, with the current User Development Fee (UDF) of Rs 550 for domestic and Rs 1,500 for international journeys set to continue till March 31, 2026. The Airports Economic Regulatory Authority (AERA) has deferred the planned reduction, citing the heavy capital expenditure and revenue shortfall of Bangalore International Airport Ltd (BIAL) as the airport gears up for major expansion. BIAL said the decision is fully in line with regulatory norms, and there is no case for a reduction at this stage. The continuation of the existing UDF is fully in accordance with AERA’s prevailing tariff order and established regulatory practice. Under the tariff framework, any temporary adjustment to charges is typically considered only in the final quarter of a control period. This allows airports to submit their Multi-Year Tariff Proposal (MYTP) in a timely manner, provides the regulator sufficient time to undertake due diligence and notify tariffs for the next control period, and ensures there is no risk of over-recovery, said BIAL spokesperson. BIAL has submitted its MYTP for the upcoming financial year well in advance, the spokesperson added.
Based on the current assessment, there was no over-recovery at Kempegowda International Airport. In the absence of any regulatory basis for a reduction at this stage, AERA has continued the existing UDF for the concluding quarter of the current financial year. However, AERA has now deferred the proposed reduction by extending the existing tariff card that was applicable between April 1 and December 31, 2025.
In its amendment order, AERA noted that while overall passenger and cargo traffic has broadly remained in line with projections, the rising proportion of transit passengers has had a dampening effect on aeronautical revenues. Allowing the continuation of existing tariffs in the final quarter of FY-26 would help partially offset this revenue gap and reduce carrying costs, the regulator said.
