Bengaluru Airport Revises Tariff Structure, Reducing Departing UDF While Introducing Arrival Fees

Flying out of Bengaluru is set to become cheaper starting September 1, following a new tariff order by the Airports Economic Regulatory Authority (AERA). The order reduces the User Development Fee (UDF) for departing passengers by nearly 45 percent. Domestic flyers will see their fee drop from ₹550 to ₹300, while the international fee will decrease from ₹1,500 to ₹997.

However, this reduction is accompanied by a new fee for passengers flying into Bengaluru. Arriving passengers will now pay ₹125 for domestic arrivals and ₹426 for international arrivals. This shift alters the airport’s UDF model from one primarily borne by departing passengers to a structure that shares costs between both inbound and outbound travelers.

AERA justified this change by noting that airport infrastructure—such as aerobridges, travelators, and baggage conveyor systems—is utilized by passengers at both ends of a journey. The revised tariff applies to the control period running until March 31, 2031.

The regulatory order also introduces a significant change in how Bangalore International Airport Limited (BIAL) will recover costs for upcoming large-scale infrastructure projects. Under the Incremental Aggregate Revenue Requirement (ARR) framework, the costs of identified high-value projects, including a proposed new terminal building, runway, apron, and taxiway, will not be included in the baseline tariff during the first year of the control period.

Instead, the airport operator will recover these expenses through an incremental tariff only after the respective assets are completed, commissioned, and operationalized. This approach aims to prevent passengers and airlines from paying upfront for unfinished infrastructure.

Additionally, the order revises charges levied on airlines. Effective September 1, domestic aircraft will face a landing charge of ₹325 per metric tonne, while international aircraft will be charged ₹455 per metric tonne.

Departing passengers will also contribute towards shared terminal infrastructure. International passengers will pay $1 towards common use terminal equipment (CUTE), common use self-service (CUSS), and baggage reconciliation service (BRS) facilities, while domestic departing passengers will pay ₹75 for the same.

To support international connectivity, AERA has permitted a Variable Tariff Plan. This plan allows airlines to receive landing-charge incentives if they meet specific conditions aimed at encouraging carriers to launch new routes, expand international operations, and increase flight frequencies. Cargo operators have also been included in this incentive framework for new domestic and international freighter services.

"<p>The restructuring of airport tariffs at Bengaluru introduces a balanced approach by shifting a portion of infrastructure costs to arriving passengers while offering relief to outbound flyers. More importantly, deferring the recovery of high-value capital expenditure until projects are fully operational protects consumers from upfront costs. For businesses, airlines, and logistics operators, the inclusion of targeted landing-charge incentives provides a predictable framework to plan routes and expand regional connectivity efficiently.</p>" — Dr. Shishir Gupta, Founder & CEO, StartupLanes