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Centre cuts airport charges for domestic airlines by 25 per cent

Aviation

The Ministry of Civil Aviation has announced a series of measures to support domestic airlines amid the ongoing West Asia crisis, which has disrupted global aviation operations and driven a sharp rise in fuel costs.

As part of its latest intervention, the government has directed a 25 per cent reduction in landing and parking charges for domestic carriers across airports for a period of three months. The move follows an earlier decision to cap the increase in domestic Aviation Turbine Fuel (ATF) prices at 25 per cent, despite global fuel costs rising sharply.

The Ministry stated that these calibrated measures are aimed at easing operational cost pressures on airlines while ensuring that air travel remains affordable for passengers.

Speaking on the development, Civil Aviation Minister Ram Mohan Naidu said, “Under the leadership of Prime Minister Shri Narendra Modi, the primary focus of the Government in the aviation sector has been to make flying a more affordable and convenient travel option for passengers. Even in the prevailing challenging situation, when global air operations are impacted, we have ensured that cancellations and rising fuel costs do not severely affect the operations of our domestic carriers. While ATF costs globally have risen by more than 100 per cent, we have passed on only a moderated increase capped at 25 per cent.”

Talking further about the interventions, Minister said “Now, with the ultimate aim of supporting airlines and, in turn, passengers, airfare increases are being further contained by reducing landing and parking charges levied by airport operators. This step is part of the Ministry’s overall effort to keep the aviation sector stable during this volatile period and to ensure ease of flying for passengers. This is a significant intervention to provide relief to airlines grappling with increasing operational costs. We are in constant touch with all stakeholders, including airlines, airport operators, and the Airports Economic Regulatory Authority of India (AERA), in this regard.”

The Airports Economic Regulatory Authority of India (AERA) has been instructed to implement the reduction at all major airports under its jurisdiction with immediate effect, while the Airports Authority of India (AAI) will extend the same reduction across non-major airports.

The measures are expected to reduce landing and parking charges payable by airlines at major airports by approximately ₹400 crore over the three-month period. Any under-recovery by airports will be adjusted during the next tariff determination cycle.

The Ministry noted that the domestic aviation sector continues to remain resilient despite global headwinds and will continue to monitor the situation closely, with further measures to be taken as required to ensure operational viability and affordable air travel.