Mumbai: Private airports have asked for an increase in user development fees from international passengers to compensate for the loss in revenue due to 25 per cent reduction in landing and parking charges of domestic flights ordered by Airports Economic Regulatory Authority.
This is one of the suggestion proposed by the Association of Private Airport Operators (APAO) to the Civil Aviation ministry.
Tariff Burden
APAO has said airports are contractually obligated to remit revenue share / per passenger fee to the Airports Authority of India (AAI) as per the respective concession agreements. In the absence of any corresponding interim relief on these outgoings, the burden of the tariff reduction disproportionately rests on airport operators, it said.
“While the provision for future true-up of under-recoveries in subsequent tariff periods is acknowledged, the immediate cash flow impact is significant. The mismatch between current revenue loss and future recovery places substantial strain on airport operations and debt servicing, particularly given the high fixed-cost nature of airport infrastructure,” APAO has said in a submission on Thursday.
Revision Required
The association has suggested that revenue share/per passenger fee amount equal to reduction in landing and parking charges could be deferred by AAI. Similarly it has asked the government to direct AERA to immediately revise landing and parking charges after the relief period.
Earlier this month the Civil Aviation ministry introduced a slew of measures to support domestic airlines. Along with limiting price hike of jet fuel to 25 per cent, AERA also ordered 25 per cent reduction in landing and parking charges at major airports.
Published on April 30, 2026