+
AERA Unlikely To Extend 25 Per Cent Airport Charges Waiver
ECONOMY & POLICY

AERA Unlikely To Extend 25 Per Cent Airport Charges Waiver

The Airports Economic Regulatory Authority (AERA) is unlikely to extend the 25 per cent waiver on landing and parking charges for domestic airlines at major Indian airports, signalling the end of a temporary relief measure. The concession ran for a three-month period and was intended to ease immediate financial pressure on carriers. With no fresh directive from the regulator, airport operators are set to return to the prevailing aeronautical tariff structure.

The waiver was announced on seven April following directions from the Ministry of Civil Aviation and reduced elements of the aeronautical tariff for all domestic flights. The measure was introduced in response to cost pressures stemming from the West Asia conflict and rising aviation fuel prices that had increased carriers' operating expenses. Landing and parking charges form a component of airport revenue and are payable by airlines for use of runway and apron infrastructure.

Industry sources indicated that airport operators had not received communication from AERA about extending the reduction, suggesting that the concession has lapsed. The reinstatement of full landing and parking charges is expected to marginally increase airlines' operating costs at a time when carriers are navigating multiple cost pressures. Aviation analysts noted that these charges account for only a portion of an airline's cost structure, and any effect on fares may therefore be limited.

Airport operators had expressed concern over revenue loss during the relief period and will seek to restore tariff recoveries as the regulatory concession ends. The move comes amid robust passenger demand in India's aviation sector, with carriers balancing short-term profitability and longer-term network and fleet expansion plans. Regulators, airports and airlines will likely continue to monitor cost trends and market conditions as stakeholders assess the most sustainable path forward.

The Airports Economic Regulatory Authority (AERA) is unlikely to extend the 25 per cent waiver on landing and parking charges for domestic airlines at major Indian airports, signalling the end of a temporary relief measure. The concession ran for a three-month period and was intended to ease immediate financial pressure on carriers. With no fresh directive from the regulator, airport operators are set to return to the prevailing aeronautical tariff structure. The waiver was announced on seven April following directions from the Ministry of Civil Aviation and reduced elements of the aeronautical tariff for all domestic flights. The measure was introduced in response to cost pressures stemming from the West Asia conflict and rising aviation fuel prices that had increased carriers' operating expenses. Landing and parking charges form a component of airport revenue and are payable by airlines for use of runway and apron infrastructure. Industry sources indicated that airport operators had not received communication from AERA about extending the reduction, suggesting that the concession has lapsed. The reinstatement of full landing and parking charges is expected to marginally increase airlines' operating costs at a time when carriers are navigating multiple cost pressures. Aviation analysts noted that these charges account for only a portion of an airline's cost structure, and any effect on fares may therefore be limited. Airport operators had expressed concern over revenue loss during the relief period and will seek to restore tariff recoveries as the regulatory concession ends. The move comes amid robust passenger demand in India's aviation sector, with carriers balancing short-term profitability and longer-term network and fleet expansion plans. Regulators, airports and airlines will likely continue to monitor cost trends and market conditions as stakeholders assess the most sustainable path forward.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

Emiza Expands Bhiwandi Fulfilment Capacity by 2.32 Lakh Sq Ft

Emiza, a leading third-party logistics (3PL) provider, has expanded its Mumbai operations with the launch of two new fulfilment facilities in Bhiwandi, adding a combined capacity of 2.32 lakh sq ft to its network.The new facilities, spread across 75,000 sq ft and 1,57,000 sq ft, mark Emiza’s fifth and sixth warehouses in the Mumbai region. The expansion strengthens the company’s fulfilment infrastructure in Western India amid the rapid growth of India’s digital commerce ecosystem.With increasing online consumption, wider product categories and rising customer expectations for faster deli..

Next Story
Infrastructure Urban

Ingersoll Rand Showcases Air Solutions for Semiconductor Sector

Ingersoll Rand will showcase its advanced compressed air solutions for India’s growing semiconductor ecosystem at SEMICON India 2026, scheduled from September 17–19 at Yashobhoomi, New Delhi.The company will display its portfolio of oil-free compressors, centrifugal compression technologies and advanced air treatment systems at Stall No. 1156, Hall No. 1. The solutions are designed to address the stringent air quality, reliability and efficiency requirements of semiconductor manufacturing applications.With India accelerating investments across semiconductor manufacturing, packaging, equipm..

Next Story
Infrastructure Energy

RECPDCL Transfers Musalgaon Transmission SPV to MSETCL

REC Power Development and Consultancy Limited (RECPDCL), a wholly owned subsidiary of REC Limited, has handed over Musalgaon Power Transmission Limited, a project-specific Special Purpose Vehicle (SPV), to Maharashtra State Electricity Transmission Company Limited (MSETCL).MSETCL emerged as the successful bidder through the Tariff-Based Competitive Bidding (TBCB) process conducted by RECPDCL, the Bid Process Coordinator, for developing Maharashtra’s intra-state transmission project on a Build, Own, Operate and Transfer (BOOT) basis.The SPV was handed over by Shri Ratnesh Kumar, General Manag..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code