Aera allows a bIAL to increase the cost of developing users for a period of 4 years
Come on April 2022, air passengers fly out of Kempegowda International Airport (KIA) must be more circular for flight tickets.
The Airport Authority of the Economic Regulatory (Aera) has enabled Bangalore International Airport Ltd (BIAL) to increase user development costs (UDF) for a period of four years until 2026 March (referred to as the third control period).
Relief, there will be no change in UDF costs in this financial year.
Aera orders issued last week brought the end of several months of deliberation with various stakeholders.
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Earlier this year, BIAL has proposed an increase in UDF on the domestic departure passenger from RS 217 at this time until the RS 450 first, then RS 550 and finally RS 555.
Similarly, the proposed increase for international passengers is from RS 839 at this time Rs 1,350, then Rs 1650 and finally Rs 2,220.
Airport operators – who have conducted an expansion project of 13,000 crore, quoted a decline in air travel demand, economic slowdown caused by locking etc.
to return proposals in UDF rates.
In its part, the Supervisory Authority – was established to see the interests of all stakeholders while determining airport rates – have cut bial infrastructure proposals, suspend several projects before arriving at the final UDF costs.
The approved Aera fee is: UDF RS 350 will be charged to domestic passengers who start in the next financial year.
This will increase to Rs 450 in 2023-24 and Rs 550 on 2024-25.
Costs will remain the same until 2025 before reducing to RS 385 for the first three months of 2026.
Similarly, international passengers will pay UDF by Rs 1,200 in 2022-23, Rs 1,500 from April 2024 to December 2025.
The cost will be reduced to 1,050 between January and March, 2026.
However, it is not clear how much additional income can be trimmed UDF is higher for a bial.
Airport operators, in submission to Aera, have projected 18 million domestic passengers and 2.36 million international passengers in the next financial year.
Passenger growth is estimated to multiply in 2026.
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BALS
“Over the past 11 years, BIAL has reinted its income to fund this increase in capacity, hoping to provide strong profit to shareholders after the project is complete.
Therefore it is very disappointing to accept ordinary tariffs that are most likely inadequate to meet our cash flow requirements And it will also submit a challenge when it comes to meet operational costs, “said an Orium spokesman.
“This is further exacerbated by the fact that during the investment recovery period, the traffic is at the lowest as a result of ongoing pandemics.”
The Bial was not happy with the recovery of Aera delaying Rs 1,100 Crore from aggregate income (AR) to the fourth control period, which began on April 2026.
“This tends to delay the return of shareholders during the control period, causing nervousness and a negative impact on investor sentiment towards the aviation sector which is seriously influenced by pandemics,” the official statement said.