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Private airport operators have urged the Centre to withdraw the temporary 25 per cent reduction in landing and parking charges for domestic airlines, arguing that the relief has outlived its purpose and is affecting airport finances. They said prolonged concessions could constrain debt servicing and delay infrastructure expansion projects. The operators maintained that easing fuel cost pressures and improving operating conditions no longer justify the temporary measure introduced during the West Asia crisis.
Private airport operators have asked the Union government to roll back the temporary 25 per cent reduction in landing and parking charges granted to domestic airlines, stating that the measure is affecting airport finances and could constrain future infrastructure development. The request comes as the three-month relief period nears its end and airport operators argue that the circumstances which prompted the concession have eased.
The Association of Private Airport Operators (APAO), which represents 14 public-private partnership (PPP) airports including Delhi, Mumbai, Bengaluru, Hyderabad, Ahmedabad, Jaipur, Lucknow and Mopa, has written to the Ministry of Civil Aviation seeking restoration of the original aeronautical charges. The association contended that airlines' operating cost pressures have moderated following the stabilisation of fuel prices and easing geopolitical disruptions in West Asia.
The temporary reduction in landing and parking charges was introduced earlier this year after the Ministry of Civil Aviation directed the Airports Economic Regulatory Authority (AERA) to reduce the charges by 25 per cent for domestic flights for three months. The move was aimed at providing financial relief to airlines facing higher fuel costs and operational disruptions arising from the conflict in West Asia. The Airports Authority of India (AAI) implemented similar reductions at airports under its management.
Airport operators said continuing the concession beyond its intended duration would adversely affect cash flows, debt repayment obligations and the financial sustainability of airport infrastructure projects. They argued that aeronautical charges form a significant portion of airport revenues and are critical for financing expansion works, capacity enhancement and operational upgrades at privately managed airports.
The operators also maintained that airports had complied with the government's request despite the financial implications, but further extensions could delay planned capital expenditure and infrastructure investments. They said maintaining stable airport revenues is necessary to support ongoing modernisation projects and accommodate growing passenger traffic across the country's aviation network.
Earlier, airport operators had sought additional regulatory support after the tariff reduction, including temporary relief from revenue-sharing obligations with AAI and revisions to passenger-related charges. They also raised concerns that there was no enforceable mechanism to ensure airlines passed on the benefit of lower airport charges to passengers through reduced airfares.
The government has not announced a decision on the operators' latest request. Any extension or withdrawal of the temporary concession will be determined by the Ministry of Civil Aviation and AERA, which regulates aeronautical tariffs at major airports. The outcome is expected to influence airport revenues, airline operating costs and the financing of future airport infrastructure projects.
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