The International Air Transport Association (IATA) on Wednesday (September 11) expressed concerns over a significant rise in airport charges in India. IATA called for regulatory measures to control costs and promote increased air travel. In India, airport tariffs are regulated by the Airports Economic Regulatory Authority (AERA), and recently, there have been increases in charges at several airports.
Willie Walsh, IATA Director General, noted that recent increases in airport fees in India, particularly after the privatisation of certain airports, are troubling. “India’s investment in infrastructure is commendable, but it will only yield benefits if costs are managed effectively,” he said. He also noted that IATA has concerns regarding airport charges in several countries.
Excessive airport fees could hinder industry growth
IATA, which represents around 330 airlines—including Indian carriers that account for over 80% of global air traffic—has also observed rising airport charges in various countries. Walsh highlighted that excessive airport fees could hinder industry growth, leading some airlines to reduce services.
India’s airport charges among the highest globally
When asked if India has some of the highest airport charges, the IATA chief replied that the charges are among the highest observed globally. The IATA chief stressed the need for fair and regulated airport charges to prevent monopolistic practices and ensure competitive pricing.
“I am not just speaking about Indian airports…if the charges are increased, it will have a direct impact on the pace of growth of the industry. In some cases, we have seen that airport charges have increased significantly and some airlines have withdrawn their services. This is something we need to be careful about,” Walsh said.
He pointed out that in Europe, stronger regulations have been advocated to address such issues and urged India to consider similar measures to keep costs in check.
Airport charges impact overall travel costs directly
Walsh emphasised that airport charges significantly impact overall travel costs, which in turn affects ticket prices. He encouraged India to implement regulations that manage these costs effectively to facilitate greater air travel accessibility.
In related news, Civil Aviation Minister K Rammohan Naidu reported that domestic air passengers in India have surged from 67 million in 2014 to 152 million in 2024, highlighting the country’s rapid growth in civil aviation.