India’s airport tariff regulator has directed major airports to reduce landing and parking charges by 25% for all domestic flights for a period of three months, offering relief to the country’s airlines amid cost pressures stemming from the ongoing Iran conflict.
The Airports Economic Regulatory Authority (AERA) issued the directive, effective immediately, applying to all major airports and domestic operations. The measure is temporary and will be reviewed before the three-month period expires.
The decision follows guidance from the Central government, which cited the ongoing West Asia crisis and its impact on aviation costs as the reason for the directive. Landing and parking charges, which are components of aeronautical tariffs, will be lowered by a quarter from current rates.
AERA clarified that any revenue shortfall resulting from the reduced charges will be reconciled in future tariff cycles through the Aggregate Revenue Requirement (ARR) mechanism.
In its statement, the regulator said: “Landing and parking charges (part of aeronautical tariff) at all major airports shall be reduced by 25% from the prevailing tariff. This reduction shall take effect immediately and will be applicable on all domestic flights for a period of three months. After due consideration, the Authority has decided to implement the directions issued by the government.”
The tariff revision is issued under the provisions of the Airports Economic Regulatory Authority of India Act, 2008, which empowers the regulator to revise tariffs in the public interest. AERA emphasised that the reduction is a policy-driven measure to provide immediate financial relief to airlines navigating increased operational costs due to geopolitical tensions in West Asia.
Erizia Rubyjeana
