Monday, March 24, 2025
Air India has formally urged the Airports Economic Regulatory Authority (AERA) to implement significant reductions in landing charges and User Development Fees (UDF) at Indira Gandhi International Airport (IGIA), Delhi. It is a bold move to reshape India’s aviation landscape.
The proposal, submitted as part of the 2024–2029 control period consultation, seeks to position India as a global transit hub by incentivizing long-haul and wide-body aircraft operations.
According to Air India’s recommendations, the airline has requested a minimum 30% reduction in landing charges per metric tonne for long-haul and ultra-long-haul flights. This includes services to North America and other intercontinental destinations. The proposal aims to improve the viability of long-duration flights while bolstering Delhi’s appeal as a preferred transit point in Asia.
To further encourage the use of wide-body aircraft on domestic routes, Air India has also proposed a complete waiver of landing charges and a 20% cut in UDF charges. These recommendations come amid the airline’s broader ambition to connect more regions across India using larger aircraft, enhancing both passenger capacity and travel comfort.
P Balaji, Group Head of GRC & Corporate Affairs at Air India, emphasized the need for regulatory support in enabling this transition. “AERA may consider a waiver of landing charges and reduce the UDF charges by 20 percent to promote usage of wide-body on domestic flights,” Balaji said in the submission.
Air India also highlighted the strategic importance of both Delhi and Mumbai airports in transforming India into a major international transit hub. The airline has advocated for incentives directly tied to international-to-international (I2I) transfer traffic, which it believes will significantly increase passenger flow through Indian airports.
Campbell Wilson, CEO of Air India, reiterated the potential economic benefits of such initiatives. “Currently, a lot of that benefit accrues to foreign countries. More wide-body services and building a hub out of Delhi and Mumbai will surge the transit traffic,” he noted, reinforcing the urgency of aligning regulatory frameworks with India’s evolving aviation goals.
Meanwhile, Delhi International Airport Ltd (DIAL) has submitted a parallel proposal to AERA, suggesting differentiated passenger fees based on travel class and peak hour travel. These suggestions, also under AERA’s evaluation, aim to optimize airport operations and passenger experience.
AERA, the statutory body under the Ministry of Civil Aviation, is reviewing all proposals as part of its consultation process for the upcoming control period. The final decision will likely influence future connectivity, passenger costs, and hub development strategies for Indian aviation.
For more information, stakeholders and the public can visit the official AERA website and review consultation papers and public submissions related to airport tariff regulation.
Image: Air India
