Mumbai: The Ministry of Civil Aviation (MoCA) announced a 25% reduction in landing and parking charges for domestic operations of Indian carriers for three months to stabilise the domestic aviation sector against volatile global markets. The relief measure comes as a strategic intervention to maintain affordable air travel amid the ongoing West Asia crisis, which has led to a sharp rise in aviation turbine fuel (ATF) costs. ATF Prices Skyrocketed Over 100% in April; Government Capped Hike at 25%The global aviation industry has been grappling with unprecedented challenges stemming from geopolitical tensions. Along with the rest of the world, ATF prices set by Indian oil marketing companies have also skyrocketed by more than 100% in April. However, the Indian government capped the price hike for domestic routes at 25%, giving significant relief to Indian carriers and passengers.The 25% increase in ATF prices also forced carriers to raise fuel surcharges for passengers. To stabilise the operational cost, MoCA announced a new reduction of airport charges as a secondary layer of support to ensure the financial viability of airlines. The ministry estimates that these measures will reduce the landing and parking charges payable by airlines at major airports over the three-month period by around Rs400 crore.
Ministry Estimates Rs 400 Crore Relief for Airlines Over Three Months
The ministry directed the Airport Economic Regulatory Authority (AERA) and the Airports Authority of India (AAI) to immediately reduce landing and parking charges by 25% of the prevailing tariff at all major and non-major airports, respectively, under their purview, for three months. According to an order issued by AERA, under-recovery by individual airports will be adjusted during tariff determination in the next control period. Civil aviation minister Ram Mohan Naidu Kinjarapu said, “Even in the prevailing challenging situation, when global air operations are impacted, we have ensured that cancellations and rising fuel costs do not severely affect the operations of our domestic carriers. This step of reducing landing and parking charges is part of the ministry’s overall effort to keep the aviation sector stable during this volatile period and to ensure ease of flying for passengers.”
Akasa Air welcomed the government’s decision and stated, “The reduction in landing and parking charges will help create a more stable operating environment for airlines, enabling us to manage costs more effectively and plan capacity with greater confidence, which will result in continued growth of the aviation sector and strengthening connectivity across the country.”To get details on exclusive and budget-friendly property deals in Mumbai & surrounding regions, do visit: https://budgetproperties.in/