BIAL can levy UDF from Jan 16

BIAL can levy UDF from Jan 16
DH News Service,Bangalore:
The Ministry of Civil Aviation on Friday allowed the Bengaluru International Airport Limited (BIAL) to collect Rs 260 (inclusive of all taxes) as user development fee (UDF) from January 16.

The ministry’s decision is in response to an application filed by the BIAL for domestic UDF.

Following this development, all domestic departing passengers will have to pay the UDF from January 16 irrespective of the date of booking or purchase of ticket. The UDF receipt can be obtained at the counters located near the departure hall of the terminal building, a BIAL release said. The BIAL had requested the ministry to sanction Rs 675 as domestic UDF.

The ministry had allowed the GMR Hyderabad International Airport (GHIAL) to levy Rs 375 as UDF from each domestic passenger. This was more than 38 per cent lower than what its promoters had sought. The GHIAL had asked for Rs 600 as UDF from domestic passengers travelling out of Hyderabad. For passengers travelling within the State, it had proposed Rs 350 as UDF. The Hyderabad airport charges Rs 1,000 as UDF from its international flight passengers. “The decision to charge UDF has come more than seven months after we began commercial operations. The UDF is a crucial revenue stream for us. Although we have not been allowed to charge the amount we requested for, this is a beginning. This UDF is ad hoc.

“The final UDF will be decided by the Ministry of Civil Aviation after further reviews or by the regulatory body, which will be appointed by the Government of India soon,” said Albert Brunner, CEO, Bangalore International Airport Limited.

Revenue sources

The UDF is classified as an aeronautical revenue source, used for the development, management, maintenance and operation of the airport. It is collected only from embarking passengers. The world over, the UDF (sometimes simply called “passenger fee” or “airport tax”) is charged from passengers.