<p>Air passengers expecting a major relief from User Development Fees (UDF) levied by the Kempegowda International Airport (KIA) could be disappointed if the state government’s request to maintain the status quo is accepted. </p>.<p class="bodytext">At the consultation organised here recently by the Airports Economic Regulatory Authority of India (AERA), the government had contended that a tariff reduction at this stage would affect the KIA’s future expansion and growth. </p>.<p class="bodytext">The AERA, the government said, had excluded forthcoming airport projects worth Rs 1,212 crore while considering the capital expenditure for determination of aeronautical tariff. It cited the expenditures on the eastern tunnel, a third entry proposed for the KIA, a 220kV substation and terminal upgrades. </p>.<p class="bodytext">“The excess revenues collected can be trued up in the next control period and will smoothen the higher tariffs that are expected in the third control period due to higher capitalisation,” it submitted. This would also mitigate tariff spikes and shocks, it said. </p>.<p class="bodytext">“It may be now difficult for further equity infusion, and therefore, the expansion projects have to be completed through external borrowings and augmented revenue.” </p>.<p class="bodytext">The Airline Operators Committee (AOC), Bengaluru, echoed the government’s position, contending that airlines are in constant need of additional infrastructure and upscaling of various facilities. Citing the KIA’s double-digit passenger growth, the AOC noted: “The situation is actually worrisome now with average holding times of up to 20 minutes.” </p>.<p class="bodytext">Urban mobility analyst Sanjeev Dyamannavar submitted that the BIAL management, even after getting sufficient land (4,000 acres) from the government, had not come out with any real estate plans to generate sufficient income. </p>.<p class="bodytext">Once the airport metro line opens, he wants all passengers travelling on it to be charged a premium service charge so the UDF burden is reduced. </p>
<p>Air passengers expecting a major relief from User Development Fees (UDF) levied by the Kempegowda International Airport (KIA) could be disappointed if the state government’s request to maintain the status quo is accepted. </p>.<p class="bodytext">At the consultation organised here recently by the Airports Economic Regulatory Authority of India (AERA), the government had contended that a tariff reduction at this stage would affect the KIA’s future expansion and growth. </p>.<p class="bodytext">The AERA, the government said, had excluded forthcoming airport projects worth Rs 1,212 crore while considering the capital expenditure for determination of aeronautical tariff. It cited the expenditures on the eastern tunnel, a third entry proposed for the KIA, a 220kV substation and terminal upgrades. </p>.<p class="bodytext">“The excess revenues collected can be trued up in the next control period and will smoothen the higher tariffs that are expected in the third control period due to higher capitalisation,” it submitted. This would also mitigate tariff spikes and shocks, it said. </p>.<p class="bodytext">“It may be now difficult for further equity infusion, and therefore, the expansion projects have to be completed through external borrowings and augmented revenue.” </p>.<p class="bodytext">The Airline Operators Committee (AOC), Bengaluru, echoed the government’s position, contending that airlines are in constant need of additional infrastructure and upscaling of various facilities. Citing the KIA’s double-digit passenger growth, the AOC noted: “The situation is actually worrisome now with average holding times of up to 20 minutes.” </p>.<p class="bodytext">Urban mobility analyst Sanjeev Dyamannavar submitted that the BIAL management, even after getting sufficient land (4,000 acres) from the government, had not come out with any real estate plans to generate sufficient income. </p>.<p class="bodytext">Once the airport metro line opens, he wants all passengers travelling on it to be charged a premium service charge so the UDF burden is reduced. </p>