Bengaluru Airport News: AERA Cuts UDF for Domestic and International Flyers

Fee Cut AERA Reduces UDF for Domestic and International Flyers
Fee Cut AERA Reduces UDF for Domestic and International Flyers

Bengaluru Airport News

The Airports Economic Regulatory Authority of India (AERA) has significantly reduced the User Development Fee (UDF) for passengers travelling from Bengaluru airport. The revised charges will come into effect from September 1, 2026, and will remain applicable during the five-year control period ending March 2031.

Under the new decision, passengers departing on domestic flights from Bengaluru airport will pay a UDF of Rs 300, while passengers departing on international flights will pay Rs 997. The revised charges are considerably lower than the existing fees and the rates proposed by the airport operator.

At present, the UDF for departing domestic passengers is Rs 550. Bangalore International Airport Ltd (BIAL), the airport operator, had proposed a lower fee of Rs 450. However, AERA has fixed the final domestic UDF at just Rs 300.

For departing international passengers, the existing UDF is Rs 1,500. BIAL had proposed a fee of Rs 1,215. AERA has reduced it further and fixed the international UDF at Rs 997.

The reduction is expected to provide some relief to passengers, particularly domestic travellers, who account for around 84% of the total passenger traffic at Bengaluru airport.

AERA has also rationalised landing charges at Bengaluru airport for the new control period. The landing charge for domestic flights has been fixed at Rs 442 per metric tonne (MT), while international flights will attract a charge of Rs 652 per MT.

These charges will apply during the fourth control period, which runs from April 1, 2026, to March 31, 2031.

Another important part of AERA’s decision is the adoption of an incremental Average Revenue Requirement (ARR) framework for Bengaluru airport. This approach changes how the airport can recover the cost of major capital expenditure projects.

Under the new framework, passengers will be charged for major capital projects only after those projects have been completed, commissioned and made operational. This means the cost recovery will be linked more closely to the actual use of completed airport infrastructure.

The approach is intended to create a clearer connection between airport investments and the charges paid by passengers.

The reduction in UDF is likely to be welcomed by passengers travelling through Bengaluru’s Kempegowda International Airport. Domestic travellers will see the biggest reduction compared with the existing fee, while international passengers will also benefit from a lower charge.

The revised UDF will start from September 1, 2026. With Bengaluru airport handling a large share of domestic passenger traffic, the reduction could have a noticeable impact on the overall cost of air travel for many passengers.

AERA’s decision also sets the regulatory framework for airport charges for the next five years, providing greater clarity for passengers, airlines and the airport operator.

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