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Write to AERA about proposed airport charge hikes at Bangalore

The Bengaluru International Airport Ltd. (BIAL), which operates the Bangalore airport, is proposing hikes in User Development Fees (UDF) of up to 750%!!!

From the existing Rs. 231.40, BIAL has proposed to the Airport Economic Regulatory Authority (AERA), revised UDF of Rs. 1,729.43. Even international passengers will see an almost doubling of their UDF from the existing Rs. 952.30 to Rs. 1,700, and the operator would like a 6% year on year automatic increase.

The CEO of Teamlease, one of India’s largest HR companies and a frequent flier, in a recent newspaper article complained

Bangalore airport doesn’t have clients but hostages who are currently forced to pay ……

AERA has put out a consultation paper, and has already conducted a stakeholders consultation meeting on this issue. Minutes of the meeting can be read here. AERA has called for submissions on this topic.

While the government favours a single-till system, where all income is clubbed and then fees are decided, BIAL, like all other airports in India, wants a dual-till system, where only aeronautical revenue is considered, and all non-aero revenue is not. Quite naturally, there is a huge difference of almost 100% in the UDF based on the differing till systems.

For more detailed understanding of single-till and double-till system we recommend reading here, here, and here

Bangalore Aviation urges you to please read the consultation paper even though it is 300+ pages, and send your submissions to AERA before 19-September-2013.

About Devesh Agarwal

A global frequent flyer with over 20 years and four million air miles, he combines his knowledge, experience, skills and passion in aviation, product management, branding, social media, logistics and marketing on Bangalore Aviation. He is ranked 6th on Mashable's list of aviation pros on Twitter. A product management expert he was awarded a silver medal at the Lockheed Martin innovation competition 2010.
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