Indian Airports Pricing Strategy Review
AVIATION & AIRPORTS

Indian Airports Pricing Strategy Review

Indian airports need to reassess their pricing strategies to improve competitiveness, boost passenger traffic, and enhance service quality, according to a report by CAPA India, a leading aviation consultancy. CAPA India highlights that the current pricing models, which often focus on maximizing revenue through high charges, may deter airlines and passengers, potentially impacting long-term growth and sustainability.

The report emphasizes that a more balanced approach to pricing, considering the needs and sensitivities of both airlines and passengers, could lead to increased traffic and higher non-aeronautical revenues. CAPA India suggests that airports adopt dynamic pricing models, similar to those used by airlines, which adjust charges based on demand and seasonality. This strategy could help airports attract more airlines and flights, ultimately benefiting passengers with more choices and potentially lower fares.

Additionally, the report points out that Indian airports should look into diversifying their revenue streams by enhancing non-aeronautical services such as retail, food and beverage, and entertainment options. By providing a better passenger experience, airports can generate additional income and create a more attractive environment for travelers.

CAPA India also notes that the regulatory framework governing airport charges in India should be more flexible to allow airports to implement innovative pricing strategies. Current regulations often impose rigid structures that may not align with the dynamic nature of the aviation industry. A more adaptable regulatory environment could enable airports to respond swiftly to market changes and competition.

The consultancy advises Indian airports to benchmark their pricing strategies against leading global airports to identify best practices and areas for improvement. By learning from successful international models, Indian airports can enhance their efficiency, profitability, and customer satisfaction.

In conclusion, CAPA India's report underscores the importance of reviewing and updating pricing strategies to ensure the sustainable growth of Indian airports. By adopting more dynamic and customer-focused approaches, airports can better meet the needs of airlines and passengers, driving long-term success in the competitive aviation market.

Indian airports need to reassess their pricing strategies to improve competitiveness, boost passenger traffic, and enhance service quality, according to a report by CAPA India, a leading aviation consultancy. CAPA India highlights that the current pricing models, which often focus on maximizing revenue through high charges, may deter airlines and passengers, potentially impacting long-term growth and sustainability. The report emphasizes that a more balanced approach to pricing, considering the needs and sensitivities of both airlines and passengers, could lead to increased traffic and higher non-aeronautical revenues. CAPA India suggests that airports adopt dynamic pricing models, similar to those used by airlines, which adjust charges based on demand and seasonality. This strategy could help airports attract more airlines and flights, ultimately benefiting passengers with more choices and potentially lower fares. Additionally, the report points out that Indian airports should look into diversifying their revenue streams by enhancing non-aeronautical services such as retail, food and beverage, and entertainment options. By providing a better passenger experience, airports can generate additional income and create a more attractive environment for travelers. CAPA India also notes that the regulatory framework governing airport charges in India should be more flexible to allow airports to implement innovative pricing strategies. Current regulations often impose rigid structures that may not align with the dynamic nature of the aviation industry. A more adaptable regulatory environment could enable airports to respond swiftly to market changes and competition. The consultancy advises Indian airports to benchmark their pricing strategies against leading global airports to identify best practices and areas for improvement. By learning from successful international models, Indian airports can enhance their efficiency, profitability, and customer satisfaction. In conclusion, CAPA India's report underscores the importance of reviewing and updating pricing strategies to ensure the sustainable growth of Indian airports. By adopting more dynamic and customer-focused approaches, airports can better meet the needs of airlines and passengers, driving long-term success in the competitive aviation market.

Next Story
Resources

Ajmera Realty launches tree drive on Environment Day

Ajmera Realty & Infra India marked World Environment Day with a large-scale tree plantation initiative—Plant-with-Purpose—across its projects in Mumbai and Bangalore. The drive was inaugurated at Ajmera Manhattan and Ajmera Greenfinity in Wadala, with senior company officials and residents in attendance. The campaign encourages residents to embrace eco-conscious, self-reliant lifestyles by growing useful plants and trees within their communities. Horticulture expert Devendra Bhekar guided residents on creating and maintaining green spaces. Ajmera Realty planted over 500 trees..

Next Story
Resources

Twaron®-reinforced tyre powers Brunel’s solar race car

Teijin Aramid’s Twaron® with circular content will debut in Bridgestone’s race tyres for the 2025 Bridgestone World Solar Challenge, supporting the Brunel Solar Team’s Nuna 13 car. This marks the first use of the recycled-content aramid in a high-performance race tyre. The Twaron®-reinforced belts help enhance durability, reduce rolling resistance, and maintain lightweight strength—critical for the 3,000-km solar race across Australia. Bridgestone combines this with ENLITENTM tech and other recycled inputs to maximise environmental and performance outcomes. Teijin Aramid, a..

Next Story
Building Material

Kamdhenu Paints launches new wood coating range

Kamdhenu Paints has launched a comprehensive premium wood coating range designed for both interior and exterior applications. The collection includes high-performance solutions like Kamwood 2K PU for a rich matt or high-gloss finish, Kamwood 1K PU for clarity and stain protection, and the Kamwood Melamyne system for a smooth, durable finish. Also featured are Kamwood Wood Stains, which enhance wood grains with vibrant colour, and NC Sanding Sealer for high-build grain filling. The range is supported by Kamwood Thinners for ease of application and optimal finish. Saurabh Agarwal, MD, ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?