User Development Fee reduced at Bengaluru’s KIA, but arriving passengers will also have to pay

The Airports Economic Regulatory Authority of India (AERA) has unveiled revised User Development Fees (UDF) for Bengaluru's Kempegowda International Airport (KIA), effective from September 1, 2026. The changes include a reduction in fees for departing domestic passengers, who will now pay ₹300 instead of the previous ₹550. International departing passengers will see their charges drop to ₹997 from ₹1,500. However, the new policy introduces a significant shift: arriving passengers will now also be required to pay UDF, a measure previously reserved solely for departures. The revised AERA tariff order applies during the fourth control period, spanning fiscal years 2026-27 to 2030-31. It will remain in force until August 2029, after which modifications will be made depending on the progress of key airport projects. Until the new rates take effect, current UDF structures for domestic and international departing passengers will stay unchanged. According to Bangalore International Airport Limited (BIAL), the updated UDF rates will be ₹300 for departing and ₹125 for arriving domestic passengers, while international passengers will pay ₹997 for departure and ₹426 upon arrival. These figures will apply until August 2029. BIAL emphasized that the new arrangement does not result in an overall increase in the base UDF. For domestic flights, the total UDF under the new system will be ₹425, lower than the previous ₹550 for departing passengers alone. Similarly, the combined international UDF will amount to ₹1,423, less than the prior ₹1,500 for departures. BIAL noted that the revised tariff aligns with practices observed at other newly launched and major airports in India, where both arriving and departing passengers share the cost. This move reflects AERA's decision to distribute the financial burden more evenly among users of the airport facility. The tariff order acknowledges substantial infrastructure investments planned at the airport as it expands its capacity for the future. Key projects highlighted include Terminal 2 Phase 2, T2 Phase 2 Apron, airfield improvements, road and landside infrastructure, and other related aeronautical developments. Incremental tariffs linked to these major projects will only be implemented once the corresponding infrastructure is completed, commissioned, and operational, following procedures outlined by AERA. The implementation of the new UDF structure marks a pivotal moment for KIA, reflecting broader efforts to modernize and expand India's aviation infrastructure. As the airport moves forward with its ambitious development plans, the revised fees aim to balance the financial responsibilities of all stakeholders while supporting ongoing growth and improvement initiatives.