India orders major airports to cut some charges by 25%, in relief to airlines

India's airport tariff regulator has ordered major airports
to cut landing and parking charges by 25% for three months for domestic
flights, offering relief to the country's airlines that are under financial
pressure due to the Iran war.
The move to cut charges comes after
IndiGo and Air India sought the rationalisation of some fees levied by
airports. The country's two largest airlines are facing a double whammy from
the Iran war, as Indian airlines are already barred from flying over Pakistan.
Airport and air navigation service
charges were the third largest expense category for airlines globally after
fuel and labour, according to airline lobby group International Air Transport
Association.
IndiGo shares jumped as much as 10% on Wednesday, hitting
the upper limit, as the broader airline sector rallied after the US announced a
two-week ceasefire with Iran.
The Airports Economic Regulatory
Authority of India (AERA), acting on the government's directions, said the
temporary reduction in charges will apply immediately and any under-recoveries
in revenue will be addressed in future tariff reviews.
















