Wednesday, December 19, 2007

Devanahalli airport to levy user fee

Devanahalli airport to levy user fee
From B S Arun, DH News Service, New Delhi:
As per the BIAL proposal, Rs 675 will be levied on every domestic passenger and Rs 955 on every international passenger leaving Bangalore. However, those arriving would not have to shell out any "user development fee"...


Reaching the new Devanahalli airport may just not be a difficult task for passengers. They will have to fork out a steep sum to board the aircraft as well.

The Bangalore International Airport Limited (BIAL) wants to levy “user development fee” [UDF] on the passengers departing from Bangalore. The airport is slated for a March 28, 2008 opening.

As per the BIAL proposal, Rs 675 will be levied on every domestic passenger and Rs 955 on every international passenger leaving Bangalore. However, those arriving would not have to shell out any UDF.

The proposal is currently before the civil aviation ministry.

The ministry, however, is of the view that the fee is on the higher side and though the BIAL is entitled to levy it as per the concession agreement, it should be a reasonable amount.

While no decision has been taken yet, the ministry has informed the BIAL authorities to reconsider the amount but the latter is understood to be reluctant to do so, informed sources told Deccan Herald on Tuesday.

“We will call BIAL officials for a meeting and see whether the amount can be reduced,” they said.

Asked for comment, a BIAL spokesperson said: “Yes, the UDF has always been a part of the concession agreement. However, this matter is currently under discussion...”

The sources noted that the greenfield airport — Bangalore’s will be the first such to be opened in the country — will get revenue from airlines on the one side and passengers on the other to augment its revenue so that it could recover the investments made.

“We will decide the fee in consultation with the Bangalore International Airport Limited. However, when the Airport Economic Regulatory Authority is formed, it can take a fresh view on the issue.”

The AERABill has already been passed by Parliament and the body can be formed any day.

Indian airports currently charge Rs 200 as service fee per passenger. Of this, Rs 70 goes to the operator and Rs 130 to the Central Industrial Security Force which takes care of the airport security.

The Delhi and Mumbai airports, which have been privatised, do not charge any UDF at present.

Connectivity woes

Meanwhile, the issue of connectivity continues to bug the authorities in Karnataka. Now that he has taken over the reins, Governor Rameshwar Thakur is said to be a worried man over airport connectivity.

Thakur had fixed a meeting with Civil Aviation Minister Praful Patel and officials of the related departments on Tuesday in Bangalore but it had to be postponed as Patel was busy elsewhere. A new date for the meeting is yet to be fixed.

THE BURDEN

* Only departees to be charged
* Fee for each domestic passenger: Rs 675
* Fee for international passenger: Rs 955

1 Comments:

At Thursday, March 13, 2008 at 11:02:00 AM GMT+5:30, Anonymous Anonymous said...

you are correct

 

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