New Delhi, 23 March - Delhi’s Indira Gandhi International Airport (IGIA), one of India’s busiest aviation hubs, has become the focal point of a significant proposal from Air India, the Tata Group-owned airline, as it pushes for lower landing charges for long-haul and ultra-long-haul flights. This request, submitted to the Airports Economic Regulatory Authority (AERA) as part of the tariff consultation for the 2024-29 control period, reflects the airline’s ambition to bolster its operations while supporting India’s broader goal of establishing itself as a global aviation hub. With the national carrier steadily expanding its wide-body fleet and international network to meet rising air traffic demand, the proposed adjustments to landing fees could play a pivotal role in shaping the future of air travel to and from the capital.
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Air India’s suggestions come at a time when the airline is intensifying its focus on long-haul routes, typically defined as flights exceeding nine hours, and ultra-long-haul services, which stretch beyond 16 hours, such as those to North America. The airline has specifically urged AERA to consider reducing landing charges for these flights by at least 30 percent on a per-metric-tonne basis, a metric tied to an aircraft’s weight. This reduction, Air India argues, would make operating such routes more economically viable, particularly as it deploys fuel-efficient, wide-body aircraft like the Airbus A350-900 and Boeing 777 on international sectors. Additionally, the airline has proposed a complete waiver of landing charges for wide-body aircraft used on domestic routes, alongside a 20 percent cut in User Development Fees (UDF), to encourage greater utilization of larger planes within India.
The backdrop to these proposals is the operational landscape at IGIA, managed by Delhi International Airport Ltd (DIAL), which has put forward its own tariff plan for the next five years. DIAL’s suggestions include variable user fees based on factors like peak versus off-peak hours and economy versus business class passengers, aiming to optimize revenue and manage congestion. Air India, however, sees an opportunity to align these changes with incentives that could drive more international-to-international (I2I) traffic through Delhi. By lowering costs for long-haul operations, the airline believes it can attract more transit passengers, positioning IGIA as a competitive alternative to established hubs like Dubai, Singapore, or Doha. This vision resonates with the Indian government’s ambition to leverage aviation as a catalyst for economic growth, reducing the reliance on foreign hubs for connecting traffic originating from India.
Air India’s leadership has emphasized the need for an economic framework that supports such aspirations. The airline’s recent operational strides—including the introduction of A350 services on ultra-long-haul routes like Delhi to New York and plans for fleet expansion with a 2029 delivery of 30 Boeing 737 MAX jets—underscore its commitment to growth. However, high landing charges and UDF could hinder these efforts, particularly for routes requiring significant fuel and crew resources. By advocating for cost reductions, Air India aims to enhance its competitiveness while contributing to Delhi’s emergence as a key node in global aviation. As AERA deliberates on these proposals in the coming weeks, the outcome could redefine the cost structure at IGIA, influencing not just Air India but the broader ecosystem of airlines operating out of India’s capital.