Air India Seeks Incentives For Expanding International Traffic At Delhi Airport

Air India has requested incentives to boost international-to-international (I2I) transit traffic at Delhi's Indira Gandhi International Airport (IGIA) and a reduction in landing charges for long-haul and ultra-long-haul flights. The Tata Group-owned airline submitted its suggestions to the Airports Economic Regulatory Authority (AERA) as part of the ongoing tariff review for the 2024-29 control period at Delhi airport, Economic Times reported.

As Air India continues expanding its wide-body aircraft operations and network to accommodate growing air travel demand, its CEO and MD, Campbell Wilson, emphasised the need for an economic structure that supports India's ambition of becoming a global aviation hub. Speaking to PTI, he noted that policies should encourage the development of Delhi and Mumbai as key transit hubs.

Delhi airport operator Delhi International Airport Limited (DIAL) has proposed variable user fees based on travel class (economy or business) and time of travel (peak or off-peak hours). In response, Air India suggested that AERA introduce incentives to enhance I2I connectivity at the airport and consider reducing landing fees for long-haul and ultra-long-haul flights by at least 30% per metric tonne.

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Ultra-long-haul flights, typically exceeding 16 hours in duration, are a key focus for Air India, especially on routes to North America. The airline further recommended that AERA waive landing charges and reduce User Development Fees (UDF) by 20 per cent to encourage the use of wide-body aircraft for domestic operations.

Highlighting the strategic role of Delhi and Mumbai as aviation hubs for both I2I and domestic-to-international (D2I) passenger flows, Air India stressed that tariff decisions at IGIA would significantly impact India's aviation hub development. Wilson reiterated that fostering a robust aviation ecosystem in India would prevent foreign hubs from capitalising on Indian transit traffic and instead bolster domestic economic growth through increased connectivity and transit services.