India’s airport economic regulator has mandated a 25 per cent cut in landing and parking charges for domestic flights across major airports.
The move follows a directive from the Ministry of Civil Aviation (MoCA) to mitigate cost pressures arising from the ongoing West Asia crisis.
Accordingly, the Airport Economic Regulatory Authority (AERA) has mandated a 25 per cent reduction from prevailing tariffs, applicable to aeronautical charges such as landing and parking fees.
The order will remain in force for a period of three months, after which its applicability will be reassessed.
In March, businessline had reported that the Centre was contemplating such a move to ease pressure on the airline industry.
Cost relief
The move forms part of a broader set of policy measures initiated by the Centre to address rising operational costs faced by airlines.
Notably, to prevent any substantial increase in expenses, the government has capped domestic Aviation Turbine Fuel (ATF) price increases at 25 per cent.
The government has removed airfare caps and kept the 60 per cent free seat allocation rule in abeyance to provide airlines greater pricing flexibility.
Furthermore, India’s aviation regulator has temporarily eased pilot flight duty time limitations (FDTL) for long-haul flights in response to global aviation disruptions.
According to sources, these measures are aimed at cushioning airlines against a sharp surge in operating costs driven by higher ATF prices, airspace restrictions, and currency pressures.
In the absence of such interventions, sources said airlines may have been forced to undertake steeper fare hikes , reduce capacity, and rationalise routes to maintain their financial viability.
Fare Surge
However, recent price trends indicate that domestic airfares have risen sharply despite the series of relief measures, with average domestic ticket prices in a 15-day booking period increasing by about 44 per cent year-on-year in April.
Sources told businessLine that the government expects these steps to eventually stabilise and reduce airfares, which will benefit passengers. However, airlines have not yet responded to queries about how these measures will shape their fare structure.
Meanwhile, the reduction in airport charges is currently limited to domestic operations. AERA stated that it would reassess the decision before the end of the three-month period, based on prevailing conditions.
Published on April 8, 2026