The main passenger terminal building at Bangalore Airport.
The main passenger terminal building at Bangalore Airport. Photo is copyrighted. Used with permission.

Bangalore airport passenger and airline fees increased significantly

June 18, 2014 1 Comment 501 Views

The Airports Economic Regulatory Authority has awarded Bengaluru International Airport Limited (BIAL), the airport operator of the Kempegowda International Airport, at Bangalore a significant fee increase affecting both airlines as well as passengers, effective July 1, 2014.

Departing passengers will see an increase of up to 31% in the User Development Fee (UDF). Five years on, with virtually no utilisation of the extra land allotted to BIAL for developing non-aeronautical facilities to cross-subsidise airport fee shortfalls, UDF still contributes almost 50% of the total aeronautical revenue of BIAL.

The charges for landing, parking, and other services used by airlines has also been increased. One can be certain the airlines will pass on these increases in the form of higher airfares from the city. The airport has also been given permission to charge a Rs. 50 common infrastructure charge (CIC) which will almost certainly be passed on to passengers.

One silver lining to the order is that the existing passenger service fee (PSF) of Rs.200 + Rs.25 service tax and cess, will see the Rs.70 facilitation fee subsumed in to the UDF while Rs.130 security fee paid for each departing passenger will continue to be paid to the CISF which guards airports across the country.

The table below shows the details of the proposed revisions in UDF and PSF effective from July 1, 2014, and from April 1, 2015.

UDF ST 12.36% TOTAL UDF PSF ST 12.36% TOTAL PSF TOTAL FEES
Domestic      
Existing 231 29 260 200 25 225 485
Eff. July 1, 14 342 42 384 130 16 146 530
Eff. Apr 1, 15 306 38 344 130 16 146 490
International      
Existing 952 118 1,070 200 25 225 1,295
Eff. July 1, 14 1,368 169 1,537 130 16 146 1,683
Eff. Apr 1, 15 1,226 152 1,378 130 16 146 1,524
UDF = User Development Fee.
PSF = Passenger Service Fee comprises of Rs. 70 facilitation fee and Rs. 130 security fee

The detailed 580 page order can be read here.

About Devesh Agarwal

A electronics and automotive product management, marketing and branding expert, he was awarded a silver medal at the Lockheed Martin innovation competition 2010. He is ranked 6th on Mashable's list of aviation pros on Twitter and in addition to Bangalore Aviation, he has contributed to leading publications like Aviation Week, Conde Nast Traveller India, The Economic Times, and The Mint (a Wall Street Journal content partner). He remains a frequent flier and shares the good, the bad, and the ugly about the Indian aviation industry without fear or favour.

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One comment

  1. Pats
    June 18, 2014 at 13:12

    So the extensive modifications to HAL & calls for reopening for short haul civilian ops is related to the increase in these fees? Getting nudges by the low cost carriers? Further, with Air Asia India announcing the shift in hub to BLR, how will this increase affect them?

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