New passenger-friendly tariff formula for airports cuts user fee at Bengaluru by 33%
New tariff formula ensures passengers pay only for infrastructure ready for use; AERA says it will address concerns over a “tariff spike” as costs are recovered over a shorter period
The airport tariff regulator has introduced a new formula at Bengaluru airport, resulting in a 33% reduction in the passenger fee from ₹450 to ₹300. This change ensures that travellers only pay for infrastructure that is currently in use, rather than projects that are planned for the future. The new formula, called the incremental Aggregate Revenue Requirement, links cost recovery with the actual completion and commissioning dates of major infrastructure projects such as new terminal buildings, runways, and taxiways.
The tariff order for Bengaluru’s Kempegowda International Airport’s fourth five-year cycle will take effect on September 1, 2026, and remain in place until March 2031. Passengers departing from the airport will now pay a User Development Fee of ₹300, down from ₹550, while arriving passengers will pay ₹125. International departing passengers will pay ₹997, and those landing will pay ₹426.
AERA Chairman SKG Rahate explained that this change aligns with the user-pay principle and incentivizes airports to complete projects promptly.
Written by urgent.news from The Hindu's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
