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Bengaluru Airport Fees Slashed for Flyers
21 Aug
Summary
- User Development Fee reduced significantly for domestic and international passengers.
- New UDF will be implemented from September 1, 2026.
- Incremental ARR framework links tariffs to project completion.
The Airports Economic Regulatory Authority of India (AERA) has significantly reduced the User Development Fee (UDF) for Bengaluru International Airport. Effective September 1, 2026, domestic passengers will pay Rs 300, and international passengers Rs 997. This marks a substantial decrease from current charges.
For the first time, AERA is implementing an incremental Average Revenue Requirement (ARR) framework. This new approach ensures that airport operator costs are recovered from passengers only after high-value capital expenditure projects are completed, protecting users from premature tariffs.
Landing charges have also been rationalized to Rs 442 per MT for domestic flights and Rs 652 per MT for international flights. The airport operator, BIAL, had proposed higher UDF and baseline ARR figures than what AERA approved.
The incremental ARR model encourages timely project execution by linking tariff recovery to asset completion. This ensures that passengers and airlines are not burdened by costs for projects that are delayed or not yet operational, making air travel more affordable.
