1 week ago
AERA Cuts Bengaluru Airport Departure Fees, Adds Arrival Charges
Bengaluru airport is changing the fees included in passengers’ tickets.
From September 1, 2026, people flying out will pay Rs 300 for domestic trips and Rs 997 for international trips.
These amounts are lower than the current departure fees.
People arriving at the airport will pay a fee for the first time: Rs 125 for domestic arrivals and Rs 426 for international arrivals.
AERA also created a new way to pay for large airport projects.
Passengers will not be charged for those projects until they are finished and ready to use.
The projects include work connected with Terminal 2 and airport taxiway or apron infrastructure.
Extra charges may be added when those projects become operational.
One report said the baseline fees could fall further from May 2030, while BIAL said the rates would be reviewed after August 2029.
AERA set departure UDFs at Rs 300 for domestic and Rs 997 for international passengers, down from Rs 550 and Rs 1,500.
Arrival UDFs were introduced at Rs 125 for domestic and Rs 426 for international passengers.
The revised rates take effect on September 1, 2026, during the April 2026–March 2031 control period.
Under the incremental ARR framework, major project costs can be recovered only after projects are completed, commissioned and put into use.
Landing charges were set at Rs 442 per metric tonne for domestic flights and Rs 652 for international flights.
- Who
- The Airports Economic Regulatory Authority of India set the charges for Kempegowda International Airport, operated by Bangalore International Airport Limited.
- What
- AERA approved a tariff structure that lowers departure UDFs, introduces arrival UDFs and sets landing charges.
- Where
- Kempegowda International Airport in Bengaluru, India.
- When
- The revised UDF rates begin September 1, 2026. The fourth control period runs from April 1, 2026, to March 31, 2031; articles differ on the timing of later tariff changes.
- Why
- AERA said the incremental ARR framework links cost recovery to the completion and use of major projects, limiting premature charges and possible over-recovery.
AERA’s approved framework
BIAL’s position
Departure fees
AERA’s approved framework
AERA approved departure UDFs of Rs 300 for domestic passengers and Rs 997 for international passengers, below both current fees and BIAL’s proposals.
BIAL’s position
BIAL had proposed higher departure UDFs of Rs 450 for domestic passengers and Rs 1,215 for international passengers.
Project cost recovery
AERA’s approved framework
AERA said major project costs should be recovered only after the assets are completed, commissioned and put into use, protecting passengers and airlines from premature tariffs.
BIAL’s position
BIAL said the revised structure provides certainty for incremental ARR tariffs and reflects the sharing of UDF between arriving and departing passengers.
Overall passenger burden
AERA’s approved framework
AERA said the lower domestic departure UDF would make air travel more affordable and support domestic aviation.
BIAL’s position
BIAL said the combined domestic UDF would be Rs 425, compared with the existing Rs 550 departure charge, while the combined international UDF would be Rs 1,423 versus Rs 1,500.
Key facts
- Domestic departure UDF
- Rs 300 per passenger, down from the existing Rs 550 and BIAL’s proposed Rs 450.
- International departure UDF
- Rs 997 per passenger, down from the existing Rs 1,500 and BIAL’s proposed Rs 1,215.
- Arrival UDF
- Rs 125 for domestic arrivals and Rs 426 for international arrivals; introduced for the first time.
- Effective date
- September 1, 2026; the tariff order says the revised fee applies to tickets issued on or after that date and is determined by the travel date.
- Landing charges
- Rs 442 per metric tonne for domestic flights and Rs 652 per metric tonne for international flights.
- Projects covered
- The incremental ARR approach covers the ECT, T2 Phase 2 Terminal and T2 Phase 2 apron; recovery begins after the assets are completed, commissioned and put to use.
- Baseline ARR
- AERA considered Rs 14,604.31 crore, compared with BIAL’s proposal of Rs 41,398.93 crore.
- Potential later changes
- One report says baseline UDFs fall further from May 1, 2030, while BIAL said the rates would remain applicable until August 2029 before modification based on project completion.
Quotes
AERA
India’s airport tariff regulator
“Further, the landing charges have also been rationalised and determined at Rs 442 per MT (Metric Tonne) for domestic flights and Rs 652 per MT for international flights for the control period.”
financialexpress.com
“This translates into a baseline Yield per Passenger (YPP) of Rs 390.42 per passenger, which has been suitably apportioned between landing and parking charges, UDF and other airport charges.”
financialexpress.com
Airports Economic Regulatory Authority of India (AERA)
India’s airport economic regulator
“Despite undertaking a massive expansion project, the combined domestic UDF under the new structure will be Rs 425 compared with the existing Rs 550 charged to a departing domestic passenger, while the combined international UDF will be Rs 1,423 compared with the existing Rs 1,500 charged to a departing international passenger”
deccanchronicle.com
“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.”
thehindubusinessline.com
deccanchronicle.com
S.K.G. Rahate
Chairperson of the Airports Economic Regulatory Authority of India
“Aera has addressed the concerns of airport operators pertaining to airport funding requirements, certainty of incremental aggregate revenue requirement (ARR) tariffs, moderation of tariff spike and overall ease of implementation of ARR framework, which have been issued in the comprehensive tariff order issued on 20 August.”
livemint.com
BIAL spokesperson
Spokesperson for Bangalore International Airport Ltd
“This does not translate into an overall increase in the base UDF.”
livemint.com
Sources
Bengaluru Airport User Development Fee slashed: What domestic and international flyers will pay
Bengaluru airport UDF cut to Rs 300 for domestic passengers: AERA
Bengaluru Airport: Aera Slashes User Development Fee to Rs 300 for Domestic Passengers
Bengaluru airport UDF falls, but new projects will add to passenger charges
Bengaluru airport to levy UDF on arrivals, cut fee for departures
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