Flying out of the Bengaluru airport will be costlier by a massive 120 per cent from Tuesday following the airport tariff regulator Airports Economic Regulatory Authority (Aera) allowing it to revise upwards the user development fee (UDF) for four month.
The new charges for domestic and international travel translate into an increase of 120 percent and 119 percent, respectively, it added. The revised fee is applicable for tickets procured between April 16 and August 15, it said adding the increased fee will be rolled back from August 16.
The Rs 13,000-cr second phase expansion entails construction of a new terminal, a second runway, access roads, and a multi-modal transport hub, company said, adding this work is scheduled to be completed by March 2021. “This incremental increase in charges will provide us with the much-needed relief as we are in the midst of a Rs 13,000-crore capacity expansion,” said Hari Marar, MD and Chief Executive. As mandated by Aera, the money generated from the incremental UDF hike in these four months, will be deposited in a separate bank account to fund the ongoing expansion. The Kempegowda International Airport began operations in May 2008 and is the second airport build on a PPP model after Kochi which was commissioned in the late 1990s. The airport handled 26.91 million passengers in FY18 and is one of the fastest growing in the world.
Canadian NRI Prem Watsa-run Fairfax owns 54 per cent in the airport and Siemens Projects Ventures 20 hold per cent. Of the remaining 26 per cent, Karnataka government and the Airports Authority holds 13 per cent each, respectively.