Private airport operators and airlines have locked horns over the issue of the former’s demands to raise tariffs for funding their ongoing expansion projects.
Airlines, on their part, oppose any hike saying this would increase cost of flying and further impact air traffic. This catch-22 situation has come to the fore yet again on Bangalore International Airport Ltd’s (BIAL) proposal to increase aeronautical tariffs and user development fees (UDF) starting this October till March 2026.
Citing “precarious financial situation,” pandemic-hit BIAL has sought a steep phase-wise hike for its third control period (April 1, 2021-March 31, 2026) in UDF starting this October till March 2026.
Domestic UDF is sought to be hiked in phases from current Rs 217 to first Rs 450, then Rs 550 and finally Rs 555. Similarly the hike proposed for international passengers is from the current Rs 839 to Rs 1,350, then Rs 1,650 and finally Rs 2,220.
“The (proposed) rates are way too high than the present rate and will raise average ticket prices by a great extent. Further, in the present situation it is unlikely that international travel will resume to normalcy level shortl