New passenger-friendly tariff formula for airports cuts user fee at Bengaluru by 33%
The Airports Economic Regulatory Authority has introduced a new tariff formula for Bengaluru airport that reduces passenger fees by 33%. This model links cost recovery to the actual commissioning of infrastructure projects rather than future planned developments.
Why it matters
This shift in regulatory policy protects passengers from paying for unbuilt infrastructure and sets a new precedent for airport tariff calculations in India.
For the first time, the airport tariff regulator has applied a new formula at Bengaluru airport, cutting the passenger fee by 33% from ₹450 to ₹300 and ensuring travellers pay only for commissioned infrastructure available for use, rather than large projects such as runways and passenger buildings to be built in the future.
The new formula comes amid scrutiny of the Airports Economic Regulatory Authority (AERA) by a Parliamentary panel earlier this year over recent increases in airport user charges, which also raised questions about how the fees were being calculated.
On August 20, 2026, the Airports Economic Regulatory Authority (AERA) issued the tariff order for Bengaluru’s Kempegowda International Airport’s fourth five-year tariff cycle, setting the charges payable by airlines and passengers to recover the airport’s capital expenditure. The tariff order will come into effect on September 1, 2026 and will be applicable until March, 2031.
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