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Airport charges cut by 25% for 3 months amid W Asia crisis

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In a major relief for the aviation sector, the Airports Economic Regulatory Authority (AERA) of India has directed major airports to cut landing and parking charges by 25 per cent for domestic flights for three months.The move is expected to ease financial pressure on various airlines, including as IndiGo, SpiceJet and Air India, which have been grappling with rising costs due to longer flight routes, higher fuel prices and operational disruptions linked to the West Asia conflict.The tariff relief comes after airlines sought rationalisation of airport charges as they are already facing a double impact, rerouting flights to Europe and North America due to the Iran conflict and restrictions on Pakistan airspace.AERA, in its order, said the reduction “shall apply immediately” and clarified that “any under-recovery of revenue on this account will be considered at the time of future tariff determination.”The regulator said the step had been taken in view of the current stress faced by the aviation sector, aiming to provide temporary relief and maintain operational stability.According to the International Air Transport Association (IATA), airport and air navigation charges remain one of the largest expense heads for airlines globally after fuel and labour, making the latest decision critical for cost management.Market sentiment also turned positive following the announcement. Shares of IndiGo surged up to 10 percent, hitting the upper circuit, while the rest of the aviation sector rallied alongside global cues after a two-week ceasefire between the United States and Iran.The temporary reduction in airport charges is expected to offer immediate relief to airlines and may help stabilise airfares in the short term, even as the sector continues to navigate a challenging operating environment.

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