Centre cuts airport landing and parking charges by 25% to support airlines

The Centre has announced a 25% reduction in airport landing and parking charges for domestic airlines, offering temporary financial relief as carriers contend with higher operating costs driven by elevated aviation fuel prices.

The decision, announced by Union Civil Aviation Minister Ram Mohan Naidu, takes effect immediately and will remain in force for three months. According to the Ministry of Civil Aviation (MoCA), the measure is intended to reduce cost pressures on airlines while helping keep domestic air travel affordable for passengers.

The ministry estimates the reduction will lower airlines' operating expenses by around ₹400 crore during the three-month period.

Charges reduced across major and non-major airports

The government has directed airport authorities to implement the reduction across the country.

Under the decision:

• The Airports Economic Regulatory Authority (AERA) will reduce landing and parking charges by 25% at all major airports for domestic flights.
• The Airports Authority of India (AAI) has been instructed to implement the same reduction at non-major airports.
• The revised charges have come into effect immediately and will remain applicable for three months.

The move ensures airlines operating across both metro and regional airport networks receive similar cost relief.

Government cites fuel price pressures

According to the Ministry of Civil Aviation, the intervention follows a sharp rise in Aviation Turbine Fuel (ATF) prices linked to volatility in global crude oil markets.

Airport landing and parking charges form part of an airline's operating expenses alongside fuel, maintenance, aircraft leasing and manpower costs.

The ministry said reducing airport charges is intended to ease financial pressure on carriers without requiring significant increases in passenger fares.

Focus remains on affordability

Speaking on the announcement, Ram Mohan Naidu said the government's priority is to maintain stability in the aviation sector while ensuring affordable and convenient air travel for passengers.

He said the latest measures form part of a broader strategy to help airlines manage rising costs without passing the full financial burden on to travellers.

The announcement comes as airlines continue to navigate fluctuating fuel prices, one of the industry's largest operating expenses.

Revenue impact to be addressed later

The Ministry of Civil Aviation said it remains in regular consultation with airlines, airport operators and regulators to monitor industry conditions and respond where necessary.

It also clarified that any revenue shortfall faced by airports because of the temporary reduction in landing and parking charges will be accounted for during future tariff determinations.

The approach is intended to balance immediate support for airlines with the long-term financial framework governing airport operators.

Temporary support as industry navigates cost pressures

The latest relief package adds another layer of government support for India's aviation sector at a time of continued cost volatility.

While the reduction is temporary, the estimated ₹400 crore saving is expected to provide airlines with additional financial flexibility over the next three months. The government's ongoing engagement with industry stakeholders suggests further policy measures could be considered if operating cost pressures persist.