Govt Announces 25% Cut in Airport Charges Amid Rising ATF Costs

NEW DELHI: The government has announced relief measures for domestic airlines, including a 25 percent cut in landing and parking charges, to ease operational costs and keep air travel affordable amid rising global fuel prices.

Union Civil Aviation Minister Ram Mohan Naidu said the move aims to support Indian carriers facing increased expenses due to a surge in Aviation Turbine Fuel (ATF) prices driven by global crude oil volatility.

The Ministry of Civil Aviation has directed the Airports Economic Regulatory Authority to implement the 25 percent reduction at all major airports for domestic flights with immediate effect for a period of three months.

Similarly, the Airports Authority of India has been instructed to enforce the same reduction at non-major airports across the country. The government estimates the step will reduce airlines’ expenses by around ₹400 crore during the three-month period.

Naidu said the government’s priority is to ensure stability in the aviation sector while maintaining affordability and convenience for passengers. He added that the measures are part of a broader strategy to help airlines manage rising costs without significantly increasing airfares.

The Ministry said it remains in constant consultation with stakeholders, including airlines, airport operators and regulators, to monitor the situation and take timely action. It also clarified that any revenue shortfall faced by airports due to reduced charges will be adjusted during future tariff determinations. (Agencies)