Private airport operators have urged the Centre to discontinue the temporary 25 per cent reduction in landing and parking charges for domestic flights once the three-month relief period expires on July 7, 2026. 

Accordingly, the Association of Private Airport Operators (APAO) said the circumstances that warranted such concession have substantially eased.

In a representation to the Ministry of Civil Aviation, APAO sought restoration of the tariff framework approved by the Airports Economic Regulatory Authority (AERA) after the expiry of the temporary relief granted by AERA.

According to the representation, the concession was conceived as an exceptional and time-bound measure to support airlines amid prevailing geopolitical challenges.

However, airport operators said the operating environment has since stabilised considerably, reducing the need for continued regulatory support.

“In these circumstances, the continuation of the concession beyond the originally stipulated period would no longer be justified,” the representation stated.

Besides, airport operators said they continue to incur substantial fixed costs and make ongoing investments in infrastructure, safety, security, technology, sustainability and capacity enhancement.

As per the representation, extending the concession would result in under-recovery of AERA-approved revenue requirements, adversely affecting financial sustainability as well as future infrastructure development.

The operators further pointed out that newly commissioned airports require regulatory stability and predictable cash flows for operational stabilisation along with long-term viability.

Notably, they said restoring the approved tariff structure after the expiry of the temporary relief would uphold established regulatory principles, ensure equitable treatment of stakeholders as well as safeguard the financial health of the aviation sector.

In addition, airport operators have requested that the landing fee revenue forgone during the relief period be permitted as a deduction from the revenue share or concession fee payable to the respective authorities during FY27.

The airport operators proposed the deducted amount could subsequently be remitted to the authorities without interest or penalty once recovered by airport operators through the tariff truing-up mechanism.

The operators said such an arrangement would provide interim liquidity to meet debt servicing obligations and ensure operational continuity while preserving the economic interests of all stakeholders through eventual settlement.

Published on June 29, 2026