The Centre on Wednesday announced a 25% cut in airport charges to ease airline cost pressures, directing major airports to reduce landing and parking fees for domestic flights for three months. The move offers relief to the country’s airlines, which are under financial strain due to the Iran war.
Following the Ministry of Civil Aviation (MoCA) directive, the Airport Economic Regulatory Authority (AERA) has mandated a 25% reduction from prevailing tariffs, applicable to aeronautical charges such as landing and parking fees, to mitigate cost pressures arising from the ongoing West Asia crisis. Similarly, the Airports Authority of India (AAI) has also been directed to reduce landing and parking charges at all its non-major airports by 25% of the approved rate. This reduction for all domestic flights will also remain applicable for a period of three months.
Centre cuts airport charges to ease pressure on airlines
“Now, as part of a multi-layered response to these unprecedented challenges, the Ministry has taken another significant decision to reduce landing and parking charges for domestic carriers by 25% for a period of three months,” the MoCA said.
These measures are expected to reduce landing and parking charges payable by airlines at major airports during the three-month period by approximately ₹400 crore, the ministry said.
The move to cut charges comes after IndiGo and Air India sought the rationalisation of some fees levied by airports.
The measure is aimed at addressing rising operational costs faced by airlines. With expenses increasing substantially, the government has capped domestic Aviation Turbine Fuel (ATF) price hikes at 25%.
Additionally, the government has removed airfare caps and kept the 60% free seat allocation rule in abeyance to provide airlines with greater pricing flexibility.
Regulator eases pilot duty norms amid global disruptions
Furthermore, the aviation regulator has temporarily eased pilot flight duty time limitations (FDTL) for long-haul flights in response to global aviation disruptions.
According to sources, these measures are intended to cushion airlines against a sharp surge in operating costs driven by higher ATF prices, airspace restrictions, and currency pressures.
In the absence of such interventions, sources said airlines may have been forced to implement steeper fare hikes, reduce capacity, and rationalize routes to maintain financial viability.
However, recent price trends indicate that domestic airfares have risen sharply despite the series of relief measures, with average domestic ticket prices in a 15-day booking period increasing by about 44% year-on-year in April.