Govt cuts airport charges by 25%, announces more relief to airlines

Union Civil Aviation Minister Ram Mohan Naidu on Wednesday announced a series of relief measures for domestic airlines, including a 25% reduction in landing and parking charges, amid disruptions caused by the ongoing West Asia crisis. The move is aimed at easing operational cost pressures on Indian carriers and ensuring that air travel remains affordable for passengers despite rising global fuel prices.  The Ministry of Civil Aviation (MoCA) said the aviation sector has been impacted by a sharp increase in Aviation Turbine Fuel (ATF) prices due to global crude oil volatility. To cushion the impact, the government had earlier capped the pass-through of ATF price increases for domestic airlines at 25%, even as global fuel costs surged significantly.
As part of the latest intervention, the Ministry has directed the Airports Economic Regulatory Authority (AERA) to reduce landing and parking charges by 25% at all major airports for domestic flights. The reduction has come into immediate effect and will remain in place for three months. Similarly, the Airports Authority of India (AAI) has been instructed to implement the same reduction at non-major airports across the country.Despite global disruptions, the government maintained that India’s domestic aviation sector remains resilient, supported by proactive policy interventions.
The government estimates that the move will reduce airlines’ expenses by approximately ₹400 crore over the three-month period. Naidu said the government’s priority is to maintain stability in the aviation sector while ensuring affordability and convenience for passengers. He added that the measures are part of a broader strategy to support airlines in managing rising costs without significantly increasing airfares. The Ministry said it is in constant consultation with stakeholders, including airlines, airport operators, and regulators, to monitor the situation and take timely action. It also clarified that any revenue shortfall faced by airports due to the reduced charges will be adjusted during future tariff determinations.