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Bangalore International Aiport ( BIAL ) : how its hurting Passengers on UDF
Written By Sanjeev - 25 October, 2013
BIAL Bangalore Analysis Aviation Bangalore International Airport
BIAL files criminal complaint against KFA, Vijay Mallya
Airlines accused of defaulting on payment to airport operator : That to Passenger who paid as UDF Amount
Liquor baron Vijay Mallya-owned Kingfisher Airlines (KFA) landed in more trouble with the Bangalore International Airport Limited (BIAL) filing a private criminal complaint in a magistrate court at Devanahalli in Bangalore Rural district seeking clearance of Rs 208 crore dues.
“We moved the magistrate court in Devanahalli on October 21 filing a private criminal complaint against KFA, Vijay Mallya, chairman and managing director, Sanjay Agarwal, chief executive officer, A Raghunathan, chief financial officer and Bharath Raghavan, company secretary, ” the BIAL lawyer Siddarth told Deccan Herald.
The BIAL sought action under IPC sections 403 ( dishonest misappropriation of property), 406 (criminal breach of trust), 409 ( criminal breach of trust by public servant, or by banker, merchant or agent), 120 B (criminal conspiracy), 418 (cheating) and 430 (mischief) and direction to the Devanahalli police to probe the matter.
While the BIAL lawyers claimed that they registered an FIR with the police on Thursday, DCP (North-East) T Suresh said the police are yet to receive an official order from the court and would act accordingly once the report is received.
User development fee
The Director General of Civil Aviation had issued a circular on September 22, 2008 directing the airlines to collect user development fees (UDF) and passenger service fees (PSF) under the provisions of the Airports Economic Regulatory Authority of India Act, 2008. The circular also directed the private airliners to remit the money to the airport operator (BIAL).
The KFA collected Rs 260 per domestic passenger from July 1, 2009 and Rs 1,070 per international passenger from September 3, 2008. The UDF was collected till September 30, 2012 and PSF till March 25, 2012, the days when the airlines stopped operations. As per the directions, the airlines had to remit the money with the BIAL, but failed to do so. Instead, the airlines used the money to clear its other dues, the BIAL alleged.
The KFA remitted some money during the initial stage and stopped it later. The BIAL’s financial audit is underway and the exact amount owed by the KFA would be known shortly, sources said.
http://www.deccanherald.com/content/365132/bial-files-criminal-complaint-against.html
So its no surprising that either Capt. Gopinath, Rajiv Chandrashekar, H N Ananthakumar, PC Mohan, Venkayia Naidu who are representing Bangalore in Center and GOK, GOI thru AAI who are share holders in BIAL as 26% keeping quite on the amount collected from Passengers as UDF is not remitted to BIAL.
So either of these MP's or Govt of GOK or GOI have any issue in increased UDF charges. Passengers are cows, milk them as much as the policy.
COMMENTS
idontspam - 27 October, 2013 - 05:52
AAI cant put glass & steel & think the airport is transformed Chennai airport is a perfect example. It doesnt have the people & culture to make a world class airport.
At the same time, I would still hold GoK accountable if any airport authority tries to exploit people, regulator has to be on top of the game and cant let operators game the system. There is a need to prove to the people that higher UDF is really necessary considering the non-airport revenue stream has not been exploited as per the original plan. I dont care that people using the airport can afford the fee but that is no license to try dirty tricks.
Naveen - 27 October, 2013 - 07:50
Non-airport revenues are cyclical & dependent on the state of the economy, demand for real estate space at the airport, etc. Projections made at the time of signing MoUs or agreements are indicative & cannot be claimed to be guaranteed like in any other business. The airport hotel is an example - it is still to take off due to very slack demand, though the projections made out long ago were that it would be viable.
I'm not sure there has been exploitation either - so far, they have only demanded a hike in UDF to be on par with Hyderabad airport & the ball is in GoK/GoI's court to decide on that - so, without their consent (as regulators), UDF cannot be increased. If they do give the consent for high UDF, it is the regulatory mechanism that is failing & not BIAL's fault as is being claimed since it suits people to bash BIAL rather than govt bodies or public sectors for whatever reasons.
The point is that when PPPs are involved, people have to accept certain higher costs in exchange for better services & not keep expecting everything at subsidized fares as before like Indian railways has been forced to do due to political compulsions & in the name of helping the aam aadmi.
idontspam - 27 October, 2013 - 15:36
I'm not sure there has been exploitation either
We dont think so, you are not sure either, so let the govt make sure, why do you have to spring to their defense without all the facts?
Naveen - 27 October, 2013 - 16:44
why do you have to spring to their defense without all the facts?
The facts are already in the open & it's not unreasonable for BIAL to be charging UDF. Nobody is defending anybody here - rather some are seeing it fit to blame BIAL for charging UDF as they see UDF itself as exploitation, which it isn't since they have provided a much better airport than AAI ever could.
It is yet to be seen if UDF is going to be hiked up substantially as demanded by BIAL (to be on par with Hyderbad airport). No one knows & I said I was unsure about this, not anything else.
Naveen - 26 October, 2013 - 07:38
Passengers are cows, milk them as much as the policy.
This may be your view, but air passengers are generally better off & don't mind paying UDF as they now have a modern airport that has good conveniences when compared to the AAI cattle sheds.
Chennai's airport newly "modernized" & being operated by AAI is having all kinds of problems like roof leaking, repeated instances of false ceiling pieces falling off, baggage belt too steep, toilets dirty /stinking, unfriendly staff, long wait for baggage reclaim, etc.
Compared to this, BIAL (& all other privately built or modernized airports that charge UDF) is a huge improvement & investments have to be recovered & running costs are high. This criticism seems meaningless.
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