The Indian government is looking to reduce the airport fees at smaller airports in the country. This move will be taken by the government in order to boost the domestic aviation industry.
It now became mandatory for the Indian carriers to fly a portion of their routes to the smaller cities and towns. This recent decision was made in order to connect around 1.2 billion people in the nation. On the other hand, airlines complained that these routes are unprofitable for them and are adding to losses in the industry which is already dealing with high-imported fuel costs, as well as expensive airport usage fees.
However, good news for the carriers is that the government is looking to reduce fees to land and park at 80 smaller destinations across the country to give the airlines more incentives to fly there. Civil Aviation Minister Ajit Singh in an interview said that this is a pilot project which will target the existing airports and disused airstrips.
These measures could later be rolled out at smaller airports. Singh added that their aim is to make these airports almost cost-free for the smaller planes. The recent idea has been welcomed by the analysts as a step in the right direction.