Bangalore International Airport Limited (BIAL), which operates Kempegowda International Airport, has proposed to the Airport Economic Regulatory Authority of India (AERA) to maintain the same User Development Fees (UDF) for the remaining two and half years of the Second Control Period which expires in March 2021.
BIAL CEO and MD Hari Marar said that his company proposes to maintain the same tariff for the remaining of this control period so that there is no tariff shock for the customers in the next control period which will be effective between 2022 and 2026.
Currently, a UDF of Rs 1,537.08 is collected from international passengers and Rs 384.27 from domestic passengers departing from KIA.
As per the consultation paper issued by AERA, the proposed UDF rates (effective from July 1, 2018 and March 31, 2019) for international embarking passenger is Rs 316.76 and for domestic embarking passenger is Rs 79.19.
Marar said that BIAL is undertaking infrastructure projects worth Rs 12,000 crore which includes the second runway, second terminal and expansion of road network.
Marar also defended the BIAL’s decision to undertake Eastern Tunnel Access Road project during the second control period.
The Eastern Tunnel Access Road project proposes the construction of a tunnel below the cross field taxiway in order to make the airport easily accessible for the residents of the eastern part city.
“About 98 per cent of the vehicle traffic from the city to the airport comes via Hebbal and the Hebbal flyover is fully choked. The proposed Eastern Tunnel Access will take away about 30 to 40 per cent of the traffic from Hebbal,” he said.
The estimated cost of the Eastern Tunnel work project is Rs 1,121 crore.
A BIAL official said that a few projects would be have to be dropped if the UDF is reduced from what is currently being collected.
Reopening of HAL Airport
Marar said that BIAL is willing to work with HAL for the reopening of the HAL airport in public interest. However, discussions were struck at the commercial level and no final decision has been taken.