The government has introduced new relief measures for domestic airlines in response to the current crisis in West Asia affecting global aviation. The aim is to help airlines cope with escalating fuel costs and prevent a sudden increase in airfares.
Civil Aviation Minister Ram Mohan Naidu stated that the government will reduce landing and parking charges by 25% for domestic flights for a three-month period to ease the financial strain on airlines. This decision is part of a broader effort by the Ministry of Civil Aviation to stabilize the sector amidst the sharp rise in global aviation turbine fuel (ATF) prices due to geopolitical tensions.
The Airports Economic Regulatory Authority of India has been instructed to implement the reduction at major airports immediately, while the Airports Authority of India will extend the same 25% cut at non-major airports to ensure uniform relief across the domestic aviation network.
This initiative follows a previous government action where the pass-through of ATF price hikes for domestic carriers was capped at 25% amid significant global fuel price surges. The government emphasized that this strategic approach aims to assist airlines in managing costs without burdening passengers excessively.
Minister Naidu reassured that despite the challenging circumstances, efforts are being made to minimize cancellations and mitigate the impact of rising fuel costs on domestic operations, with a focus on maintaining affordable and accessible air travel.
Officials estimate that the reduction in airport charges will result in approximately Rs 400 crore in savings for airlines over the three-month period. Any financial shortfall experienced by airports will be addressed in the subsequent tariff cycle to ensure their financial sustainability.
Continuous engagement with stakeholders, including airlines, airport operators, and regulators, is ongoing as the government responds to the evolving crisis. Additional measures may be considered if the situation deteriorates further.
Despite global aviation challenges, the government highlighted the resilience of India’s domestic aviation sector, attributing it to timely policy interventions and consistent passenger demand.