NEW DELHI- Tata Group-owned Air India (AI) has submitted a comprehensive proposal to the Airports Economic Regulatory Authority (AERA) seeking reduced landing fees for long-haul and ultra-long-haul flights.
The Tata Group-owned airline aims to create favorable economic conditions for expanding international operations at Delhi’s Indira Gandhi International Airport (DEL).
Photo: Clément AlloingAir India International Flights Fees
The airline proposes introducing incentives to increase international-to-international (I2I) traffic.
Air India’s strategy involves reducing landing charges by at least 30 percent per metric tonne for long-haul flights, which typically exceed nine hours, and ultra-long-haul flights lasting 16 hours or more.
Air India CEO Campbell Wilson emphasized the critical importance of creating a supportive market structure to transform India into a global aviation hub. The proposal highlights the potential for generating economic activities through increased international transit traffic.
Wilson told PTI that the current traffic benefits primarily accrue to foreign countries. By developing robust hub operations in Delhi (DEL) and Mumbai (BOM), Air India (AI) seeks to redirect these economic advantages to the domestic market. The proposal represents a calculated approach to transforming India’s international aviation landscape.
Photo: The QuintProposed Tariff Modifications
The airline recommended several key modifications to airport charging structures, including:
- Waiving landing charges
- Reducing User Development Fee (UDF) by 20 percent
- Implementing variable tariffs for economy and business class passengers
- Creating incentive mechanisms for international traffic development
Photo: Utkarsh Thakkar (Vimanspotter)Air India’s Long-Haul and Ultra Long-Haul Flight Expansion
Air India (AI) is strategically positioning itself to become a significant player in global long-haul aviation.
The airline plans to expand its wide-body fleet and network to capitalize on growing international travel demand. Currently, the carrier operates ultra-long-haul routes to North America, with ambitions to extend its reach to more distant destinations.
The airline’s fleet expansion strategy includes acquiring modern wide-body aircraft capable of supporting extended-range operations.
Air India aims to compete directly with established international carriers by offering competitive long-haul routes that connect major global cities through Delhi (DEL) and Mumbai (BOM) hubs.
Regulatory Considerations
AERA’s tariff determination for the 2024-29 control period will play a crucial role in supporting Air India’s expansionary vision.
The proposed changes aim to create a more competitive environment for international air travel, potentially positioning Indian airports as significant global transit points.
“AERA may consider a waiver of landing charges and reduce the UDF charges by 20 percent to promote utilization of wide-body on domestic flights,” the submission signed by P Balaji, Group Head of GRC (Governance, Regulatory, Compliance) & Corporate Affairs at Air India, said.
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