India slashes airport charges by 25% to ease airline burden amid US-Iran tensions
Delhi: In a bid to provide relief to airlines grappling with rising operational costs, the Indian government has directed 34 major airports to reduce landing and parking charges for domestic flights by 25% for the next three months. The Airports Economic Regulatory Authority (AERA) has issued an order to this effect, applicable immediately.
The move is aimed at mitigating the impact of the US-Iran conflict on the aviation sector, which has led to increased fuel costs and airspace restrictions. The reduction in charges is expected to save airlines approximately ₹400 crore during this period.
Civil Aviation Minister Ram Mohan Naidu stated that the decision is part of the government’s efforts to keep the aviation sector stable and ensure affordable air travel for passengers. The ministry has capped the hike in domestic Aviation Turbine Fuel (ATF) at 25% this month.
The reduction in airport charges is seen as a significant intervention, given that most airports are run on a Public-Private Partnership (PPP) model. The decision will be reviewed prior to the completion of the three-month period.
