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The Association of Private Airport Operators (APAO) has urged the Ministry of Civil Aviation to restore the regular landing and parking charges for domestic flights after the temporary three-month concession ends on July 6. The association said the relief, introduced to support airlines during disruptions caused by the West Asia conflict, was intended as a short-term measure. It also requested permission for airport operators to recover the revenue lost during the concession period through an approved mechanism, stating that continued discounts could affect airport finances and future infrastructure investments.
The Association of Private Airport Operators (APAO) has requested the Ministry of Civil Aviation to restore the normal landing and parking charges for domestic flights once the temporary three-month relief period ends on July 6. The association has also sought permission for airport operators to recover the revenue lost during the concession period from airlines through the regulatory truing-up mechanism.
The temporary reduction in airport charges was introduced by the Airports Economic Regulatory Authority (AERA) earlier this year after the conflict in West Asia created operational and financial challenges for Indian airlines. As part of the relief package, AERA allowed a 25 per cent reduction in landing and parking charges for domestic flights at all major airports for a period of three months to ease financial pressure on carriers.
In a letter sent to the ministry in the past week, APAO stated that the concession was designed as an exceptional and time-bound measure to address a specific situation. The association said that the geopolitical conditions which led to the relief had improved considerably and the circumstances that justified the support had largely eased. Therefore, extending the concession beyond the originally approved period would no longer be appropriate.
The association further noted that airport operators continue to bear significant fixed operating costs while also investing in capacity expansion, passenger facilities and infrastructure upgrades. According to APAO, continuing the discounted charges would result in under-recovery of the revenue requirements approved by AERA, affecting the financial sustainability of airport operators and their ability to undertake future infrastructure development.
To offset the financial impact of the concession already provided, APAO proposed that airport operators be allowed to deduct the landing fees forgone during the three-month period from the revenue share or concession fee payable to the respective authorities for the financial year 2026-27. The association also suggested that the deducted amount could later be remitted to the concerned authority, without any interest or penalty, after operators recover the amount through AERA's truing-up mechanism.
AERA regulates tariffs for major airports across the country and periodically determines aeronautical charges, including landing, parking and user development fees, to ensure a balance between airport financial viability and the interests of airlines and passengers. The temporary concession announced earlier this year was one of several measures aimed at helping domestic airlines manage rising operational costs amid geopolitical disruptions.
According to its official website, APAO represents 16 private airport operators across India, including those managing Delhi and Mumbai airports. The association has consistently engaged with the government and regulators on issues related to airport tariffs, infrastructure funding and policy reforms affecting privately operated airports.
Source Reuters
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