Air India has urged regulators to reduce landing charges and User Development Fees (UDF) at Indira Gandhi International Airport. As a result, the airline aims to lower costs and strengthen India’s position as a global transit hub.
Air India submitted its proposal to the Airports Economic Regulatory Authority (AERA) as part of the 2024–2029 consultation process. Moreover, the airline seeks a 30% cut in landing charges for long-haul flights, including routes to North America and other intercontinental destinations. Consequently, this move aims to make ultra-long-haul flights more viable and attract more international travelers through Delhi.
To encourage airlines to use larger aircraft on domestic routes, Air India has also suggested a complete waiver of landing charges and a 20% reduction in UDF. In addition, this change would allow more passengers to travel on wide-body aircraft, increasing both capacity and comfort. Therefore, it could significantly improve domestic air travel efficiency.
Furthermore, Air India sees Delhi and Mumbai airports as crucial to its plan for making India a global transit hub. Since international-to-international transfer traffic plays a key role in airport growth, the airline has proposed incentives to encourage more transit passengers. As a result, passenger flow through Indian airports could rise significantly, boosting the country’s aviation industry.
Meanwhile, Delhi International Airport Ltd (DIAL) has presented its own proposal, focusing on passenger fees. Specifically, it has suggested charging different fees based on travel class and peak-hour demand. While AERA reviews all proposals as part of its consultation process, these decisions will ultimately shape India’s aviation landscape.
The final decision from AERA will play a key role in shaping India’s aviation future. Moreover, it will impact flight connectivity, passenger costs, and the overall growth of major Indian airports. Consequently, the outcome could determine how competitive India becomes in the global aviation market.
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