AERA Waives Landing Charges For International Airlines At NMIA To Boost Traffic

Mumbai: India’s Airports Economic Regulatory Authority (AERA) has waived landing charges for international passenger flights introducing new routes to the Navi Mumbai International Airport (NMIA). The key modifications to the airport’s aeronautical tariff were approved following the airport operator’s request citing “underutilisation” of the infrastructure.

AERA approves tariff changes

The AERA determined the aeronautical tariff for NMIA for the first control period from April 2025 to March 2030, under which it approved a variable tariff plan (VTP) for international flights. It allowed a complete waiver of landing charges for international flights operating a “new route in Mumbai Metropolitan Region (MMR).” Navi Mumbai International Airport Ltd. (NMIAL), the airport operator, demanded authority to modify the provision and allow concessions for a “new route from NMI,” stating that a route qualifies as new only if it is not already operated from anywhere within the MMR.

In its letter dated August 4, the airport operator said airlines have been unwilling to commence international operations from NMIA despite the commissioning of full international airside and terminal infrastructure, citing the quantum of aeronautical tariffs despite the concession granted by the VTP. Apart from the aeronautical tariffs, the airport also attributed the failure to attract newer international flights to prolonged geopolitical conflicts resulting in higher fuel prices, airspace closure, insurance surcharges and depressed demand.

Incentives for new routes

On September 8, AERA approved the request and modified the VTP provision, highlighting that it does not align with the objective of ramping up international traffic from the greenfield airport. “The present structure of the VTP may not provide a sufficiently targeted incentive for airlines to utilise the airport infrastructure created for the purpose at NMIAL and therefore may not achieve the intended objective of promoting air traffic,” the addendum read.

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Following the modification, international airlines starting new short-haul routes from NMIA will benefit from a complete waiver of landing charges in the first year and a half waiver in the second year. Similarly, long-haul flights will follow the same structure, with an additional 25% waiver in the third year. However, additional frequency from the airport for short-haul and long-haul routes will attract only a 50% and 25% waiver, respectively, only in the first year. International freighter flights will also receive a 90% waiver in the first year and 50% in the second year.

Conditions for airlines

However, the concession includes various terms and conditions for airlines, requiring that the discount apply only to direct services and that carriers maintain operations for at least one full year.

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