India has now ordered major airports to cut landing and parking charges by 25%, offering some relief to airlines. Many Indian airlines are currently grappling with financial pressure due to tensions in the Middle East. This new change might help improve the situation a bit.
India Orders Major Airports To Cut Charges
According to a report by The Economic Times, India’s airport tariff regulator has decided to introduce an important change. It has ordered major airports in India to cut landing and parking charges by 25% for three months for domestic flights. The change comes as a relief to the country’s airlines, which are under extreme financial pressure due to tensions in West Asia.
Reportedly, the move to cut charges comes after airlines such as IndiGo and Air India sought the rationalisation of fees levied by airports. Both of these are India’s two largest airlines. According to the airline lobby group, International Air Transport Association, air and air navigation service charges are the third-largest expense category for airlines globally after fuel and labour.
Also Read: India To Get 100 Airports, 200 Modern Helipads In Next 8 Years Under UDAN Scheme 2.0
Rule Applies To Domestic Flights
According to The Hindu BusinessLine, the order applies to landing and parking charges, which are classified as part of aeronautical tariffs. However, this measure is currently restricted to domestic operations. The applicability of this decision will be reviewed before the end of the three-month window.
This means authorities can choose to either continue this rule for some more time or end it. The decision reportedly followed the Ministry of Civil Aviation’s directive to reduce the impact of the West Asia crisis for a three-month period. This temporary reduction in charges will apply immediately.
Also Read: Car Ferrying Catering Staff Hits Parked IndiGo Plane At Kolkata Airport; Probe Underway
What do you think of this new rule? Do share your thoughts in the comments section below.
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Why has India ordered airports to reduce tariff charges by 25%?
India has ordered airports to reduce tariff charges by 25% to ease financial pressure on airlines due to Middle East tensions.
What are some good Indian airlines?
IndiGo and Air India are among the top airlines in India.
For how long will the airport tariff cut apply?
The 25% reduction will apply for three months and will be reviewed later by the authorities.