AERA Unlikely to Extend 25% Airport Charge Waiver for Domestic Airlines

Domestic airlines are likely to lose a key cost relief measure as the Airports Economic Regulatory Authority (AERA) is unlikely to extend the 25 per cent waiver on landing and parking charges at major airports, according to sources. The temporary concession, introduced in April to ease financial pressure on carriers, has now expired without any fresh extension order.

The waiver was announced by AERA on April 7 following directions from the Ministry of Civil Aviation , amid disruptions and rising operational costs linked to the West Asia conflict . The regulator had reduced landing and parking charges for all domestic flights at major airports for a period of three months.

Sources said airport operators have not received any communication extending the relief, effectively allowing the waiver to lapse. There was no immediate response from the civil aviation ministry on the matter.

The move signals a return to normal airport tariffs at a time when airlines continue to grapple with high fuel prices, supply chain constraints, fleet shortages, and volatile operating costs . Landing and parking fees form part of the aeronautical charges paid by airlines and directly influence their operating expenses, particularly for carriers with dense domestic networks.

Last month, the Association of Private Airport Operators (APAO) urged the ministry not to continue the temporary concession beyond the initial three-month period. The association argued that airport operators should be allowed to recover the revenue foregone during the waiver period from airlines.

The likely withdrawal of the concession reflects the government's effort to balance support for airlines with the financial sustainability of airport operators. While the waiver provided temporary relief during a period of geopolitical uncertainty, its expiry could modestly increase operating costs for domestic carriers, though the immediate impact on passenger airfares remains uncertain.