Government announces relief measures for airlines, cuts airport charges by 25%
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.
Relief Amid Rising ATF Costs
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.
25% Cut in Airport Charges
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.
Impact on Airlines and Passengers
The government estimates that the move will reduce airlines’ expenses by approximately ₹400 crore over the three-month period.
Speaking on the decision, 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.
Coordinated Approach
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.
Sector Remains Resilient
Despite global disruptions, the government maintained that India’s domestic aviation sector remains resilient, supported by proactive policy interventions.
The Ministry said it will continue to closely monitor developments and take further steps if needed to ensure safe, affordable, and sustainable air travel.
