India Cuts Domestic Flight Landing, Parking Fees 25% For 3 Months To Ease Airline Costs

2026-04-09 02:20:20

(MENAFN- Khaleej Times) [Editor's Note: Follow Khaleej Times live blog amid US-Israel-Iran ceasefire for the latest regional developments.]

A series of relief measures, including a 25 per cent reduction in landing and parking charges, have been announced by the Indian government for the domestic sector aimed at easing operational costs and ensuring affordable fares for passengers despite soaring fuel prices.

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“This is a significant intervention to provide relief to airlines grappling with increasing operational costs,” said Ram Mohan Naidu, India's civil aviation minister.

The Ministry of Civil Aviation (MoCA) has directed the Airports Economic Regulatory Authority (AERA) to reduce landing and parking charges by 25 per cent at all major airports for domestic flights with immediate effect for three months.

The Airports Authority of India (AAI) is to implement the same reduction at non-major airports across the country. The government says the move will reduce airlines' expenses by about Rs4 billion (Dh160 million) over the three-month period.

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“Even in the prevailing challenging situation, we have ensured that cancellations and rising fuel costs do not severely affect domestic operations,” said the minister, adding that the government remains focused on keeping air travel affordable and accessible.

The government is in consultation with airlines, airport operators and regulators and monitors the situation by taking prompt action, said the ministry.

Any revenue shortfall for airports because of the reduced charges will be adjusted during future tariff cycles.

The ministry's decision is to help airlines facing massive problems because of higher aviation turbine fuel prices, depreciating rupee, the closure of vital airspace across the Gulf and the higher costs because of longer diversions that they have to take while flying to Europe and the US.

India's top carriers including Air India and IndiGo have introduced revised fuel surcharges because of the rise in aviation turbine fuel costs.

"According to the latest data published by the International Air Transport Association (IATA), the global average jet fuel price rose to $195.19 per barrel for the week ending March 27, 2026, up from $99.40 at the end of February, recording a surge of close to 100 per cent," said an Air India release.

IndiGo also introduced a fuel charge from March 14, 2026. "This measure is taken due to the significant surge in fuel prices following the ongoing geopolitical issues in the Middle East. IATA's Jet Fuel Monitor indicates an 85 per cent increase in fuel prices for the region," the airline said.