The new UDF will be applicable from June 1 for the year 2020-21.

Bengaluru airport increases user development fee to compensate for revenue loss
news Aviation Saturday, May 30, 2020 - 17:27
Written by  IANS

Bangalore International Airport Limited (BIAL) has raised User Development Fee (UDF) by 17% for departing international passengers to compensate for revenue loss, an official said on Saturday.

"The revised UDF for departing passengers at Kempegowda International Airport, Bengaluru is Rs 184 per pax (domestic) and Rs 839 per pax (international)," said an airport official.

Earlier, the UDF was Rs 179 per pax (domestic) and Rs 716 per pax (international).

The UDF for domestic departing passengers rose by 3% and for international passengers by 17 per cent.

The new UDF will be applicable from June 1 for the year 2020-21.

According to the airport, the Airport Economic Regulatory Authority (AERA) has allowed Bengaluru Airport to increase the fees to compensate the loss of discontinuation of Fuel Throughput Charges (FTC).

"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, as a result of abolition of FTC," said the spokesperson.

On January 8, the Ministry of Civil Aviation (MoCA) ordered AERA to direct airport operators to discontinue FTC levy on Aviation Turbine Fuel (ATF) in any form at all airports.

“The Ministry of Civil Aviation (MoCA) issued an order dated January 8, 2020 – addressed to AERA – directing airport operators to discontinue the levy of Fuel Throughput Charges (FTC) on Aviation Turbine Fuel (ATF), in any manifestation, at all airports. It 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,” a BIAL spokesperson said.

FTC is also a regulated charge.

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