Summary:
BENGALURU: Beginning Sunday, passengers will have to pay less user development fee ( UDF ) for air tickets booked to and from Kempegowda International Airport (KIA).UDF is collected directly from passengers while booking and handed over to the airport operator. The Airports Economic Regulatory Authority of India ( AERA ) slashed UDF for international and domestic passengers at KIA by 67% as per an August 31order, which will come into effect from Sunday.UDF for international passengers has been reduced from Rs 1,226 to Rs 400 and for domestic passengers from Rs 306 to Rs 100. AERA has also reduced landing, parking and housing charges imposed by the Bangalore International Airport Limited ( BIAL ) on airlines by up to 60%.However, airlines are unlikely to shift the benefits to passengers. Many airlines in the country are facing losses due to a huge financial crunch.Hari Marar, managing director and CEO of BIAL, recently told mediapersons that air fares follow the dynamic pricing model based on demand and supply, so reduction of UDF may not reflect in the charges..