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Bengaluru: If you are flying from Bengaluru airport, you should be ready to absorb a hike of 120 percent in airfares as the airport tariff regulator, Airports Economic Regulatory Authority (AERA), approved a hike proposed by the airport in the user development fee (UDF) for four months. India's third-busiest airport, after Delhi and Mumbai, plans to use the proceeds of this hike to fund its expansion.
"With the Aera order coming into effect from April 16, the UDF for domestic departures will be revised to Rs 306 from Rs 139 while for international departures it will be Rs 1,226 from Rs 558 earlier," a statement released by Bengaluru airport said on Monday.
While this marks a 120 percent hike for domestic travel, international travel is going to get costlier by 119 percent, the statement said.
The change in UDF will be applicable on tickets bought between April 16 and August 15 and the hike will also be rolled back from August 16 since it is only effective for a period of four months.
Kempegowda international airport is going to use the funds raised from the hike to fund the second phase of its expansion plan that is going to cost Rs 13,000-crore. The plan involves the construction of a new terminal, a second runway, access roads, and a multi-modal transport hub, the airport said, adding that the 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, the managing director and chief executive.
The Bengaluru airport is operated on a public-private model where 54 percent of the airport is with Canadian NRI Prem Watsa-run Fairfax and 20 percent is held by Siemens Projects Ventures. The remaining 26 percent is held by the Karnataka government and the Airports Authority of India in 50:50 ratio.
