Travel Retail and Duty Free Business Intelligence    Friday 29 August 2014

NEWS

Bengaluru International Airport spurred by new User Development Fee for domestic departing passengers – 12/01/09

Published: 12/01/09

Source: ©The Moodie Report

By Melody Ng

INDIA. Bengaluru International Airport has received the go ahead from the Ministry of Civil Aviation to charge a domestic User Development Fee (UDF) of INR260 (US$5.40) for all domestic outbound passengers.

All domestic departing passengers will pay the UDF starting 16 January, irrespective of the date of booking or purchase of ticket. The UDF receipt can be obtained at the counters located before the departure hall of the terminal building.

Bangalore International Airport Limited (BIAL) CEO Albert Brunner said: “The decision to charge UDF has come more than seven months after we began commercial operations. UDF is a crucial revenue stream for us and although we have not been allowed to charge the amount we requested for, this is a beginning.

“The presently approved UDF is an ad-hoc UDF. The final UDF will be decided by the Ministry of Civil Aviation after further reviews or by the regulatory body, who will be appointed by the Government of India soon.”

BIAL has invested INR2273 crore (US$474 million) in the design and construction of Bangalore’s first greenfield international airport. The contractual agreements specify the collection of domestic UDF from airport opening day whereas until now only international passengers were levied a UDF of INR1070 (US$22.30).

BIAL said that Indian airport infrastructure can be modernised up to international standards if adequate funds are available. Such funds can either come from the government, the airlines or – in the case of Public Private Partnerships (PPP) – from passenger fees such as the UDF.

The UDF is levied for the provision of passenger amenities, services and facilities and will be used for the development, management, maintenance and operation of the airport.

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