Bangalore International Airport Ltd (BIAL) has announced a Variable Tariff Plan that allows airlines to take advantage of lower charges during non-peak hours.

BIAL’s new tariff structure, as determined by Airports Economic Regulatory Authority (AERA), reduces the cost per passenger in the second year to the level that has been in existence for the last six years.

The revised UDF (user development fee) and PSF (passenger service fee) charged by BIAL are as follows: Domestic – the existing ₹301.40 has been revised to ₹342 for FY 2014-15 and ₹306 for FY 2015-16; International – the existing ₹1022.30 has been revised to ₹1,368 for FY 2014-15 and ₹1,226 for FY 2015-16.

The statement from BIAL said this was the first review of airline charges in 10 years. The current tariff focuses on providing a reasonable return to airport operators based on investments that the airport has made in the first phase and more recently in expanding the airport.

To stimulate air traffic, expand the market and make air travel more accessible, BIAL has introduced the home carrier concept and also announced norms for availing it.

BIAL said through this concept, it plans to provide better and direct connectivity from the home base to more regional centres and smaller towns.

Home carrier “In order for these benefits to accrue to the region and to passengers, it is important that such tariffs are offered. In doing so, a virtuous cycle is created where lower tariffs stimulate growth and the growth lowers tariffs even further. Therefore it is important that the “Home Carrier” status is only conferred upon a carrier that commits to significant growth and more importantly agrees to base that growth out of the home airport,” said GV Sanjay Reddy, Managing Director, BIAL.

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