The Airports Economic Regulatory Authority of India (AERA), India’s airport tariff regulator, has ordered major airports to cut landing and parking charges by 25% for three months for domestic flights, offering relief to the country’s airlines that are under financial pressure due to the Iran war.
AERA: What it means for airline companies
The move to cut charges comes after IndiGo and Air India sought the rationalization of some fees levied by airports. The country’s two largest airlines are facing a double whammy from the Iran war, as Indian airlines are already barred from flying over Pakistan.
The Airports Economic Regulatory Authority of India, acting on the government’s directions, said the temporary reduction in charges will apply immediately, and any under-recoveries in revenue will be addressed in future tariff reviews.
“Landing and parking charges (part of aeronautical tariff) at all major airports shall be reduced by 25 per cent from the prevailing tariff. This reduction shall take effect immediately and will be applicable on all domestic flights for a period of three months,” AERA stated in the order.
“After due consideration, the Authority has decided to implement the directions issued by the government,” it added.
Airport and air navigation service charges were the third largest expense category for airlines globally after fuel and labor, according to the International Air Transport Association.
Industry body ask centre’s help with Dubai Airport restrictions
Earlier, the industry body Federation of Indian Airlines sought the Center’s help in removing the restrictions on one rotation a day imposed by Dubai Airport Authorities on foreign carriers.
In a communication to the Civil Aviation Secretary last week, FIA said that continuation of such restrictions on Indian carriers is already leading to anti-competitive market conditions and substantial revenue losses, among others.
Indian flights cancelled due to Iran War
Indian carriers have cancelled over 10,000 flights since the onset of the West Asia conflict, as escalating tensions and airspace restrictions disrupted international operations, Joint Secretary in the Ministry of Civil Aviation said.
The widespread closures of key transit corridors forced airlines to suspend or reroute services, particularly on long-haul routes to Europe and North America.
“On an average, Indian carriers used to fly about 300 to 350 flights daily to the Middle East . Today that number has come down to 80-90. That takes the total, flights cancelled by Indian carriers, since the beginning of the situation, that is from February 28, to over 10,000,” Asangba Chuba Ao, Joint Secretary in the Ministry of Civil Aviation, said at a news briefing on West Asia developments.