Airport Operators Seek Policy Support Amid Aviation Sector Challenges

Airport operators call for urgent policy support following a government-mandated 25% reduction in landing and parking charges, which they claim impacts cash flow and sustainability. They advocate for tariff adjustments and relief measures to maintain operations and meet financial obligations.

In light of a recent government directive to cut landing and parking fees by 25%, airport operators have urgently requested regulatory support from India's Ministry of Civil Aviation (MoCA). The Airports Economic Regulatory Authority (AERA) implemented this change across major airports immediately for a three-month period, aiming to provide relief to the civil aviation sector.

While the Airport Operators Association of India (APAO) acknowledges the intent behind the policy, they have expressed concerns about the negative implications. According to industry sources, the reduction is expected to significantly affect the operators' cash flow, debt repayment capabilities, and operational sustainability, especially amidst the volatile geopolitical landscape impacting international traffic and revenue streams.

The operators argue that the uniform reduction approach fails to account for airport-specific conditions, leading to uneven financial disruption across different facilities. Additionally, they urge MoCA to ensure the cost savings benefit passengers and propose measures such as differential user development fees for international travelers and reduced VAT on Aviation Turbine Fuel to buffer financial strains.