To provide immediate relief to the aviation sector, the Airports Economic Regulatory Authority of India (AERA) has announced a major decision. According to AERA, landing and parking fees for domestic flights have been reduced by 25 per cent at all major airports across the country. This reduction is effective immediately and will remain in effect for the next three months. After three months, AERA will review market conditions, airlines’ financial positions, and industry challenges before deciding on further charges.
The tariff follows the government’s directive to the authority in view of the ongoing West Asia crisis, the order stated.
“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.
Will it help airlines?
According to reports, this reduction in airport charges is expected to provide airlines with relief from cost pressures. There is also speculation that airlines may pass on this relief to passengers. However, no official announcement has been made yet.ย
Airlines have been under pressure for the past couple of weeks due to rising fuel prices and operational challenges. Landing and parking charges constitute a significant portion of airlines’ total operating expenses, especially for those with high aircraft utilisation rates. By reducing these charges, AERA aims to provide temporary financial support to airlines operating on domestic routes, thereby improving their margins and cash flow.
Reduction applies to all major airports
This temporary relief will apply to all major airports controlled by AERA, and is expected to provide widespread benefits to the entire aviation ecosystem. This decision will particularly benefit domestic airlines, which are currently facing unstable operating conditions.ย
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