Business

Bengaluru airport passenger fee cut by 45%

By Sohail Khan 21 August 2026, 7:28 pm

Benchmarks
Nifty24,252.0020.16

FEATURED FUNDS★★★★★

Motilal Oswal Midcap Fund Direct-Growth

5Y Return
24.02 %

Invest Now

Enter search text:

Business News›Industry›Transportation›Airlines / Aviation›Bengaluru airport passenger fee cut by 45%: Domestic flyers to pay Rs 300 from September 1

Read Today's Paper

Bengaluru airport passenger fee cut by 45%: Domestic flyers to pay Rs 300 from September 1

Synopsis

Bengaluru airport's passenger fee will fall 45% to Rs 300 for departing domestic flyers from September 1, under a new tariff order by AERA. The regulator has also cut the international fee to Rs 997 and adopted an incremental revenue framework, linking recovery of major infrastructure costs to project completion.

Domestic air passengers flying out of Bengaluru will pay significantly less in airport user charges from September 1, with the Airports Economic Regulatory Authority of India (AERA) fixing the User Development Fee (UDF) at Rs 300 per departing passenger for the five-year period through March 2031.

The revised fee is 45% lower than the existing Rs 550 and also below the Rs 450 proposed by airport operator Bangalore International Airport Ltd (BIAL). The reduction is particularly significant for Bengaluru, where domestic travellers account for about 84% of total passenger traffic.

For departing international passengers, the UDF has been set at Rs 997, compared with the existing Rs 1,500 and BIAL's proposed Rs 1,215, AERA said in a release on Friday.

The regulator's decision comes as part of the fourth control period, which runs from April 1, 2026, to March 31, 2031. However, the revised UDF will be levied from September 1, 2026.

New tariff framework puts passengers first

AERA has, for the first time, adopted an incremental Average Revenue Requirement (ARR) framework for the airport. Under this approach, passengers will not bear the cost of certain high-value infrastructure projects until those assets are completed, commissioned and available for use.

Earlier, UDF and other airport charges could be recovered from passengers before the completion of such projects.

AERA said the new approach would ensure that tariff recovery is more closely linked to the actual availability and use of airport infrastructure, protecting passengers from paying prematurely for assets that are not yet operational.

"This is also aimed at encouraging the airport operator for timely execution and commissioning of big capex projects at the airport and thus reduce the risk of over-recovery for passengers and airlines in case of delays, deferment, non-execution of such planned capex projects," the regulator said.

The framework applies to major projects including the Eastern Cross Taxiway (ECT), T2 Phase 2 terminal and T2 Phase 2 apron. AERA said the incremental tariff recovery for these projects will begin only after the respective assets are completed and put into use, with the projects expected to enter the tariff calculation from 2029-30.

Landing charges also rationalised

AERA has also revised landing charges for the control period to Rs 442 per metric tonne for domestic flights and Rs 652 per metric tonne for international flights.

BIAL had proposed a baseline ARR of Rs 41,398.93 crore, or Rs 35,252.08 crore in present value terms, for the fourth control period. AERA, however, considered a substantially lower baseline ARR of Rs 14,604.31 crore, equivalent to Rs 11,751.55 crore in present value terms.

"This translates into a baseline Yield per Passenger (YPP) of Rs 390.42 per passenger, which has been suitably apportioned between landing and parking charges, UDF and other airport charges," AERA said.

The regulator said the lower UDF would help keep air travel more affordable for domestic passengers while supporting the growth of domestic aviation.

"This will make air travel affordable to domestic passengers, while supporting the growth of domestic aviation," AERA said.

Add as a Reliable and Trusted News Source
Add Now!

(You can now subscribe to our WhatsApp channel)

(Catch all the Business News, Breaking News and Latest News Updates on The .)

…moreless

(You can now subscribe to our WhatsApp channel)

Read More News on
Bengaluru Airport User Development FeeAERA Bengaluru Airport Fee ReductionBIAL Domestic Passenger ChargesBengaluru Airport User Charges September 1Domestic Passenger Fee Bengaluru AirportBengaluru Airport Domestic FlightsBengaluru Airport Landing ChargesAirports Economic Regulatory Authority of IndiaBengaluru Airport Infrastructure ProjectsAffordable Air Travel Bengaluru

(Catch all the Business News, Breaking News and Latest News Updates on The .)

…moreless

Enter search text:

Continue reading with one of these options:
Limited Access
Free
Login to get access to some exclusive stories

& personalised newsletters
Login Now

Unlimited Access
Starting @ Rs120/month
Get access to exclusive stories, expert opinions &

in-depth stock reports
Subscribe Now

Unlock Access to All Exclusives with ETPrime FREE TRIAL

15 Days Free: Unlock All ETPrime Exclusives, Market Tools & ePapers

Trial offer expiring in00 : 05 : 00

I'd rather pay ₹2599 now

Uh-oh! This is an exclusive story available for selected readers only.

Worry not. You’re just a step away.

Prime Account Detected!

It seems like you're already an ETPrime member with

Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.

Unlock ETPrime's Exclusive Stories Today!

Subscribe to gain powerful insights on business, stock market and industry trends.

Big Price Drop! Flat 40% Off

Student Only Offer

Already a Member? Sign In now

Already a Member? Sign In now
Already a Member? Sign In now

Offer Exclusively For You

Save up to Rs. 700/-

ON ET PRIME MEMBERSHIP

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get Flat 40% Off

Then ₹ 1749 for 1 year

Avail Offer

Offer Exclusively For You

ET Prime at ₹ 49 for 1 month

Then ₹ 1749 for 1 year

Avail Offer

Special Offer

Get flat 40% off on ETPrime

Avail Offer
Avail Offer

Claim NowAlready a Member? Sign In now

Need Assistance?

Connect with an ETPrime expert for personalized support and guidance

+91 9484700004

' + h3 + '

' + h4 + '

' + listing + '

What’s Included with

ETPrime Membership

1Exclusive Insights That Matter

Uncover the truth with our investigative stories

Make strategic moves using the real-world case studies

Read industry-specific stories to identify emerging trends

Spot opportunities with in-depth insights that matter

Trump temper on H-1B visas is forcing Indians to do these things to stay put in US

What Adani’s US indictment means for India Inc’s overseas fundraising
Why veterans like Reliance, L&T are on acquisition spree? Aswath Damodaran has an answer.

Will China’s dollar bond sale in Saudi Arabia trump the US in financial world?
Huawei launches its own OS to compete with Google and Apple. But can it win beyond China?

The problem with lab grown diamonds
Why a falling rupee is a better option for the economy

A list of top 20 momentum stocks that have delivered massive returns in one year