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Private Indian airports warn government-mandated charge cut may hurt cash flows
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Private Indian airports warn government-mandated charge cut may hurt cash flows
Apr 30, 2026 9:00 AM

By Abhijith Ganapavaram

April 30 (Reuters) - Private Indian airport operators

have warned that a government-directed 25% cut in landing and

parking charges could strain cash flows and debt servicing, with

no enforceable mechanism to ensure that airlines pass on the

benefit to passengers, according to a letter seen by Reuters.

* India's airport tariff regulator ordered

major airports to cut landing and parking charges by 25% for

three months for domestic flights, following directions from the

federal government, to offer relief to the country's airlines

that are under financial pressure from the Iran war.

* The Association of Private Airport Operators (APAO) said

in the letter that it supported the intervention but sought

urgent policy and regulatory support, citing traffic reductions,

revenue losses, cost escalation and operational risks amid

uncertainty over the evolving geopolitical situation.

* The Ministry of Civil Aviation, Airports Authority of

India (AAI) and APAO did not immediately respond to Reuters'

requests for comment.

* The order was issued without consultation with airport

operators, APAO said, adding that a uniform 25% reduction does

not adequately consider airports' domestic-international traffic

mix, creating significant revenue imbalances.

* The association sought deferment of revenue share or

per-passenger fee payments owed to AAI during the relief period

and proposed an upward revision in landing and parking charges

after the relief period to recover the shortfall.

* Aviation turbine fuel costs account for a much-larger

share of airline costs than landing and parking charges, the

letter noted.

* APAO asked the ministry to ask state governments charging

value-added tax on jet fuel above 5% to reduce it to 5% or

below.

* Adani Airports Holdings Ltd, a unit of Adani

Enterprises, is India's largest private airport

operator by number of airports, followed by GMR Airports

.

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