Govt directs AAI to slash airport charges by 25% to curb airfares

To curb rising domestic airfares, the Civil Aviation Ministry has directed AAI to cut landing and parking charges by 25% at non-major airports for three months. This follows airline operational cost hikes due to the West Asia crisis and fuel prices.

Govt Slashes Airport Charges to Curb Rising Airfares

In a move aimed at curbing the sharp rise in domestic airfares amid the West Asia crisis, the Ministry of Civil Aviation has directed the Airports Authority of India (AAI) to reduce landing and parking charges at non-major airports.

According to an official communication issued by the Ministry, AAI will reduce Landing and Parking Charges -- part of the aeronautical tariff -- at all its non-major airports by 25 per cent of the approved rate. The order states that the reduction will come into immediate effect for all domestic flights and will remain applicable for a period of three months. The decision will be reviewed before the completion of the three-month period.

Airlines Grapple with High Operational Costs

The directive comes in view of rising operational costs for airlines triggered by the ongoing tensions in West Asia, which have disrupted fuel supplies and pushed up global jet fuel prices. Recently, airlines have introduced or revised fuel surcharges citing the spike in aviation turbine fuel prices.

Air India's Surcharge Revision

In an earlier development, the Air India group announced revisions to its fuel surcharge structure. "Air India group today announced further revisions to its fuel surcharge structure across domestic and international routes," the airline said in a statement. The airline also noted the surge in global fuel prices.

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

IndiGo Introduces Fuel Charge

Similarly, IndiGo had earlier announced the introduction of a fuel charge on both domestic and international routes. According to an official statement, "IndiGo is introducing a fuel charge on domestic and international routes, effective from March 14, 2026."

The airline had stated that the move was prompted by the sharp rise in fuel prices due to geopolitical tensions. "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+% increase in fuel prices for the region," the statement said.

Expected Impact on Air Travel

The government's decision to lower airport charges is expected to reduce operational costs for airlines and help prevent further escalation in domestic ticket prices for passengers. (ANI)

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