1 week ago
AERA Cuts Bengaluru Airport User Fees for Domestic Passengers
AERA decided to reduce the extra fee passengers pay at Bengaluru airport.
Domestic passengers will pay Rs 300, while international passengers will pay Rs 997 when leaving the airport.
These amounts are lower than both the current fees and the airport operator’s requested fees.
The new fees will start on September 1, 2026.
AERA also reduced and standardised landing charges for airlines.
The regulator introduced a new system for recovering the cost of major airport projects.
Under this system, passengers are charged for projects only after those projects are completed and available for use.
AERA said this can protect passengers from paying too early for delayed or unfinished projects.
It also encourages the operator to complete major projects on time.
AERA set the Bengaluru airport’s domestic UDF at Rs 300 and international UDF at Rs 997 for the five-year control period.
The new fees are below existing charges of Rs 550 for domestic and Rs 1,500 for international departing passengers.
The airport operator, BIAL, had proposed higher fees of Rs 450 for domestic and Rs 1,215 for international passengers.
The revised UDF will be levied from September 1, 2026, while the fourth control period runs from April 1, 2026, to March 31, 2031.
AERA also set landing charges at Rs 442 per metric tonne for domestic flights and Rs 652 for international flights.
- Who
- The Airports Economic Regulatory Authority of India (AERA) set the charges, while Bangalore International Airport Limited (BIAL) operates the airport.
- What
- AERA reduced the Bengaluru airport’s user development fees and set new landing charges for domestic and international flights.
- Where
- The Bengaluru international airport.
- When
- The fourth control period runs from April 1, 2026, to March 31, 2031; the revised UDF will apply from September 1, 2026.
- Why
- AERA said its incremental ARR framework links passenger fee recovery to completed and operational capital projects, helping prevent premature or excessive recovery.
AERA's regulated approach
BIAL's proposed approach
User development fees
AERA's regulated approach
AERA fixed UDF at Rs 300 for departing domestic passengers and Rs 997 for departing international passengers.
BIAL's proposed approach
BIAL had proposed Rs 450 for departing domestic passengers and Rs 1,215 for departing international passengers.
Timing of cost recovery
AERA's regulated approach
AERA’s incremental ARR framework allows recovery after high-value capital projects are completed and available for use.
BIAL's proposed approach
The previous approach recovered UDF from passengers before projects were completed; the article does not state BIAL’s position on the new framework.
Passenger and airline protection
AERA's regulated approach
AERA said the framework can prevent premature or excessive recovery if projects are delayed, deferred, or not executed, while encouraging timely completion.
BIAL's proposed approach
BIAL’s higher proposed fees would have generated greater passenger-fee recovery than the amounts approved by AERA.
Key facts
- Domestic departing UDF
- Rs 300 per passenger, compared with the existing Rs 550 and BIAL’s proposed Rs 450.
- International departing UDF
- Rs 997 per passenger, compared with the existing Rs 1,500 and BIAL’s proposed Rs 1,215.
- UDF effective date
- September 1, 2026.
- Control period
- April 1, 2026, to March 31, 2031.
- Domestic landing charge
- Rs 442 per metric tonne.
- International landing charge
- Rs 652 per metric tonne.
- Domestic passenger share
- Around 84% of total passenger traffic at the Bengaluru airport.
Quotes
Airports Economic Regulatory Authority of India
India’s airport economic regulator
“This is also aimed at encouraging the airport operator for timely execution and commissioning of big capex projects at the airport and thus reduce the risk of over-recovery for passengers and airlines in case of delays, deferment, non-execution of such planned capex projects”
thehansindia.com
“Similarly, UDF for departing international passengers has been fixed at Rs 997 per passenger, as against Rs 1,215 proposed by the airport operator and the existing UDF Rs 1,500.”
thehansindia.com
Sources
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