New Delhi: The Centre has announced a 25% reduction in landing and parking charges for domestic flights for three months, as it moves to support airlines grappling with rising costs amid the ongoing West Asia crisis.
Civil Aviation Minister Ram Mohan Naidu said the measure is aimed at easing operational pressure on carriers and preventing a sharp spike in airfares.
Relief for airlines amid rising costs
The decision comes at a time when global aviation is facing turbulence due to surging aviation turbine fuel (ATF) prices, driven by geopolitical tensions.
To ensure uniform implementation, the government has directed the Airports Economic Regulatory Authority of India to enforce the 25% reduction across major airports.
At the same time, the Airports Authority of India has been instructed to extend similar relief at non-major airports, covering the entire domestic aviation network.
Part of a broader strategy
This move builds on earlier steps taken by the government to stabilise the sector. Notably, the Centre had capped the pass-through of rising ATF costs to passengers at 25%, even as global fuel prices surged.
The government said this calibrated approach is designed to help airlines absorb cost pressures without significantly burdening passengers.
“Even in the prevailing challenging situation, we have ensured that cancellations and rising fuel costs do not severely affect domestic operations,” Naidu said.
Financial impact and industry support
Officials estimate that the reduction in airport charges could result in savings of around ₹400 crore for airlines over the three-month period.
To balance the impact on airport operators, any revenue shortfall will be adjusted in the next tariff cycle, ensuring financial sustainability for infrastructure providers.
The Ministry of Civil Aviation said it remains in close coordination with airlines, airport operators and regulators, and may consider further measures if the crisis intensifies.
Sector outlook
Despite global disruptions, the government maintains that India’s domestic aviation sector remains resilient, supported by steady passenger demand and timely policy interventions.
However, the evolving geopolitical situation in West Asia continues to pose risks, particularly through fuel price volatility and supply chain disruptions.
Conclusion
The 25% cut in airport charges offers immediate relief to airlines navigating a challenging cost environment. While it may not fully offset rising fuel expenses, the move is expected to help stabilise fares and maintain operational continuity in the short term.