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The Airports Economic Regulatory Authority (AERA) is unlikely to extend the 25% reduction in landing and parking charges for domestic flights at major airports after the expiry of the three-month relief period, according to sources. The waiver, introduced in the past quarter following a directive from the Ministry of Civil Aviation, was intended to ease financial pressure on airlines amid disruptions arising from tensions in West Asia. Airport operators have not received any communication extending the concession, indicating that the reduced tariff has lapsed. The development comes after private airport operators sought the restoration of normal charges and requested permission to recover the revenue forgone during the concession period.
The Airports Economic Regulatory Authority (AERA) is unlikely to extend the 25% reduction in landing and parking charges applicable to domestic flights at major airports, with the three-month concession period having ended, according to sources familiar with the matter.
The waiver was introduced following a directive issued by the Ministry of Civil Aviation in the past quarter to provide temporary financial relief to airlines facing operational and cost pressures linked to geopolitical tensions in West Asia. AERA subsequently implemented the government's direction through an order issued on April 7.
According to sources, airport operators have not received any communication from the regulator or the ministry extending the concession beyond the original three-month period. In the absence of a fresh order, the waiver is understood to have expired, allowing the prevailing aeronautical tariffs to resume.
There was no immediate response from the Ministry of Civil Aviation regarding whether the relief measure would be extended or replaced by any alternative support mechanism.
In its April 7 order, AERA had directed that landing and parking charges, which form part of the aeronautical tariff levied at major airports, would be reduced by 25% from the prevailing rates. The regulator had stated that the reduction would apply immediately to all domestic flights for a period of three months in accordance with the government's directive.
The regulator had also noted that, after due consideration, it had decided to implement the instructions issued by the central government. The temporary reduction was introduced as airlines faced higher operating costs and financial pressures arising from developments in West Asia.
Ahead of the expiry of the concession, the Airports Authority Public Operators Association (APAO), which represents private airport operators, urged the Ministry of Civil Aviation to discontinue the temporary reduction once the prescribed period concluded. The association also requested that airport operators be permitted to recover the revenue forgone during the three-month concession from airlines.
Landing and parking charges constitute a significant component of airport aeronautical charges paid by airlines for aircraft operations. Any revision to these tariffs has a direct impact on airport revenues as well as airline operating costs. The expiry of the temporary waiver is expected to restore the applicable tariff structure at major airports unless a fresh directive is issued by the government or the regulator.
Source - PTI
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