The Airports Economic Regulatory Authority of India (AERA) has sharply reduced the User Development Fee (UDF) at Bengaluru International Airport, offering relief to air passengers. Under the revised tariff structure, departing domestic passengers will pay Rs 300, while departing international passengers will be charged Rs 997.
The new UDF rates will come into effect from September 1, 2026, and will remain applicable during the fourth control period, which runs from April 1, 2026, to March 31, 2031, PTI reported.
The domestic UDF has been reduced from the existing Rs 550 and is also lower than the Rs 450 proposed by Bangalore International Airport Ltd (BIAL), which operates the airport. For international passengers, the fee has been cut from the existing Rs 1,500 to Rs 997, compared with the Rs 1,215 proposed by the airport operator.
AERA has also revised landing charges, fixing them at Rs 442 per metric tonne for domestic flights and Rs 652 per metric tonne for international flights during the five-year control period.
New Framework For Airport Projects
For the first time, AERA has introduced an incremental Average Revenue Requirement (ARR) framework. Under this system, the cost of major capital expenditure projects will not be recovered from passengers before the facilities become operational.
Instead, the airport operator will be allowed to recover the cost through an incremental tariff only after the respective projects are completed, commissioned and put into use.
The regulator said the move will protect passengers from paying for infrastructure that is not yet available while also encouraging the airport operator to complete major projects on time.
Among the high-value projects covered under the framework are the Eastern Cross Taxiway (ECT), T2 Phase 2 Terminal and T2 Phase 2 Apron. Their incremental tariff recovery is expected to begin only after the projects are completed, with the recovery scheduled to come in the fourth year of the control period, 2029-30.
Domestic passengers account for around 84 per cent of Bengaluru airport’s total passenger traffic. AERA said keeping the domestic UDF at Rs 300 will help make air travel more affordable while supporting the growth of domestic aviation.
The regulator also considered a baseline ARR of Rs 14,604.31 crore, against BIAL’s proposed Rs 41,398.93 crore, for the fourth control period.
