No UDF for domestic passengers

No UDF for domestic passengers
Exempted For First 3 Months; BIAL Asked To Follow Hyderabad Pattern
Anshul Dhamija & Saurabh Sinha | TNN

Bangalore/New Delhi: International passengers will frown while domestic passengers can smile for some time. When the new Bengaluru International Airport (BIA) takes off, domestic passengers will be spared of paying the user development fee (UDF) for the first three months. The UDF for international travellers, however, will remain at Rs 955 (exclusive of taxes).
BIAL authorities seem to have toed the line of the government and have taken a cue from their Hyderabad counterpart. Top state government and civil aviation ministry sources have confirmed the development to TOI.
However, a BIAL official said: “The UDF matter is currently under discussion. As soon as the matter is concluded we will let you know.”
According to sources, the civil aviation ministry had asked BIAL to charge the same UDF as the new Hyderabad international airport. In Hyderabad, international passengers are charged Rs 1,000, while domestic passengers are exempt from UDF for the first three months. “Once BIAL sends an audited report on the total expenditure of the new airport, the civil aviation ministry will decide on a workable UDF for both domestic and international passengers,” said a source. The civil aviation ministry is keen that the UDF is low for domestic passengers after the threemonth exemption period. For short-haul flights (a duration of 30 minutes to 1 hour), a UDF of Rs 100 and for long-haul domestic flights a UDF of Rs 200 (inclusive of taxes) is what the ministry is likely to ask BIAL to consider.
BIAL had previously fixed the UDF for domestic passengers at Rs 675 plus taxes (12.4% service tax). Later, it said it would reduce the UDF charges for domestic and international passengers to Rs 240 plus taxes and Rs 520 plus taxes respectively for the first two months. However, international carriers are unhappy over the UDF. Leading international carriers have told TOI that they are not willing to pass the UDF on to passengers until an airport regulator is in place. “Let there be a regulator, then let’s talk of UDF,” said a senior official of a leading South East Asian carrier.
They are believed to have told BIAL that since the UDF doesn’t concern the airline, BIAL should charge the international passengers directly at the immigration counter. Many carriers believe that this UDF pricing will create unwarranted accounting problems for them. Some domestic carriers are also of the opinion that BIAL should set up a separate counter at the airport where the UDF can be collected.
Flight Path
l Government recommends UDF of Rs 100 for short-haul flights and Rs 200 for long-haul after 3-month period ends
l Expresses interest in re-looking at concessions agreement (CA)
l Unhappy over clause in CA stating no other commercial airport can come up for the next 25 years
l BIAL-government yet to reach a decision on whether or not to have a function on May 11