New Delhi: India's private airport operators have urged the government to discontinue the temporary relief on airline charges, warning that further extension will squeeze airport finances and constrain investments in capacity expansion projects.
The temporary tariff cut was introduced after the war in West Asia pushed up airlines' operating costs, particularly due to rising jet fuel prices. With those pressures now easing, airport operators say there is little justification for extending the concession, as it would “impact sustainability and future infrastructure developments”.
The Association of Private Airport Operators (Apao), which represents 14 public-private partnership airports, has warned that continuing beyond the three-month reduction in landing and parking charges will bring down regulator-approved revenues. It would strain cash flows and their ability to fund investments in new terminals, runways and other infrastructure.
Mint has seen a copy of the 23 June letter, signed by Apao secretary general Satyan Nayar. Airports under the association include those operated by Adani, GMR Airports, Zurich Airport International AG, and Bangalore International Airport Ltd.
"The geopolitical environment has stabilized considerably, and the conditions that necessitated such support have substantially eased," Nayar wrote in his letter addressed to civil aviation secretary Samir Kumar Sinha. "In these circumstances, the continuation of the concession beyond the originally stipulated period would no longer be justified."
Nayar requested that the temporary relief (to airlines) be allowed to lapse on schedule, 7 July, and the tariff framework approved by the Airports Economic Regulatory Authority (AERA) be restored.
“Prolonging the concession extended to the airlines would lead to under-recovery of AERA-approved revenue requirements, impacting financial sustainability and future infrastructure development,” Nayar wrote.
The association said newly commissioned airports "require regulatory stability and predictable cash flows for operational stabilization and long-term viability,” he wrote, adding that withdrawal of concessions would “ensure equitable treatment of stakeholders” while protecting the “financial health” of the aviation sector.
Nayar was not immediately available for comments. Queries emailed to the civil aviation ministry remained unanswered till press time.
On 7 April, Aera ordered a 25% reduction in landing and parking charges for domestic flights at major airports for three months. The measure was introduced as a temporary relief package for airlines following disruptions caused by the war in West Asia.
Airlines had lobbied with the civil aviation ministry for the relief measure, citing strained finances and rising operating costs, including a rise in jet fuel prices.
Airport operators now contend that the geopolitical environment has stabilised, with airlines restoring capacities for the Gulf routes.
"Airports need recapitulation of the financial impact, as the geopolitical situation is showing signs of stabilising," said Amit Mittal, aviation expert and Director at Aerointellect Aviation, a consultancy firm. "Now a mechanism which will allow airports to shore up their revenues in due course without any abrupt hike, may be the way forward."
In its 30 April letter, Apao said airports were already contending with weaker traffic, especially on international routes. GMR Airports chief financial officer, Saurabh Chawla, had also told Mint that passenger traffic growth would remain muted in the first half of FY27, and is expected to pick up post-September.
Data released by DGCA show that in April 2026, domestic passenger traffic in India dropped by 4%-odd to 13.82 million.
Airport operators say restoring the original tariff structure is important as they prepare for further expansion.
For context, the Fairfax-managed Bengaluru airport and the GMR-run Hyderabad airport have proposed roughly ₹33,000 crore in expansion projects over the next four to five years, between FY27 and FY31. The upcoming Bhogapuram airport, also to be run by GMR, has a proposed capex of nearly ₹4,700 crore. Two recently operationalised airports - Zurich Airport-run Noida International Airport and Adani-run Navi Mumbai International Airport have a combined capex of over ₹30,000 crore.
Besides restoring the approved tariffs, the association has sought temporary relief for airports that have absorbed the impact of the concession.
It has proposed allowing operators to deduct the landing fee revenue forgone during the three-month period from the revenue share or concession fee payable to the respective government authority for FY27. The amount could subsequently be remitted back under the government-approved mechanism.
According to the association, such an arrangement would provide much-needed interim liquidity to airport operators while preserving the economic interests of all stakeholders through eventual settlement.