Aviation

The center reduces domestic airline airport fees by 25%.

In the midst of the ongoing West Asia crisis, which has affected international aviation operations and caused a substantial increase in fuel prices, the Ministry of Civil Aviation has announced a number of measures to support domestic airlines.

The government has ordered a 25% cut in landing and parking fees for domestic airlines at all airports for a duration of three months as part of its most recent action. The action comes after a previous decision to set a 25% restriction on domestic Aviation Turbine Fuel (ATF) price increases despite a substantial spike in fuel prices worldwide.

According to the Ministry, these calibrated steps are intended to relieve airlines of operating expense pressures while maintaining passenger affordability.

Civil Aviation Minister Ram Mohan Naidu stated, “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. We have made sure that cancellations and growing fuel prices do not negatively impair the operations of our domestic airlines, even in the current difficult circumstances that affect international aviation operations. We have only passed on a minor increase, capped at 25%, despite the fact that ATF costs have increased by over 100% worldwide.”

Speaking further about the interventions, the Minister stated, “Now, airfare increases are being further contained by reducing landing and parking charges levied by airport operators, with the ultimate aim of supporting airlines and, in turn, passengers. This action is a part of the Ministry’s broader initiative to maintain passenger comfort and stability in the aviation industry during this unstable time. This is a big step toward helping airlines that are struggling with rising operating expenses. In this regard, we maintain continuous communication with all relevant parties, such as airlines, airport operators, and the Airports Economic Regulatory Authority of India (AERA).”

The Airports Authority of India (AAI) will apply the same reduction to all non-major airports, while the Airports Economic Regulatory Authority of India (AERA) has been directed to implement the cut immediately at all major airports under its authority.

Over the course of three months, the measures are anticipated to lower the landing and parking fees that airlines must pay at major airports by about ₹400 crore. During the subsequent cycle of tariff calculation, any under-recovery by airports will be corrected.

The Ministry stated that despite global challenges, the local aviation industry is still strong and would keep a careful eye on the situation. Additional steps will be made as needed to guarantee operational viability and reasonably priced air travel.

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