AERA announce no hike in tariffs till Sept 30 for passengers flying from KIA

Bengaluru:  Air passengers travelling through Kempegowda International Airport (KIA) can heave a sigh of relief for now as the Airport Economic Regulatory Authority of India (AERA) has ordered that the existing User Development Fee (UDF) and other tariffs will continue for the next six months, from April to September 30.

However, this is only an interim arrangement. The UDF could seek a hike if the tariff determination process for the current Control Period (five-year periods in terms of aeronautical tariff), now in progress, is completed earlier than six months, according to the KIA sources.

Citing revenue shortfall due to the Covid-triggered closure of airport operations, the Bangalore International Airport Limited (BIAL) had sought an increase in aeronautical charges.

Last year, AERA had revised both the UDF and landing charges at KIA for the 2020-21 financial year, effective from June 1, 2020. This was to recover the shortfall of Rs 136.82 crore due to the abolition of Fuel Throughput Charges (FTC).

For international embarking passengers, the UDF was fixed at Rs 839 and Rs 184 for domestic travelers. BIAL had then sought a 66 per cent increase in landing charges, which the authority felt was high in view of the crisis in the aviation industry. The airlines had benefited from the abolition of FTC.

To moderate the burden, it was decided that the compensation should be shared by the airlines and passengers by a 70:30 ratio. The aircraft landing charges were revised accordingly, sources added.

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