4 hrs ago

Navi Mumbai Airport Offers Landing Waivers to Attract International Routes

Navi Mumbai Airport Offers Landing Waivers to Attract International Routes
AERA Waives Off Landing Charges For International Flights At NMIA After Airport Operator Says 'Infrastructure Underutilised' · freepressjournal.in

Navi Mumbai airport wants more airlines to fly to other countries from its new airport.

AERA has approved discounts on the fees airlines pay when their planes land.

New international routes will pay no landing charges during their first year.

Short flights can receive another discount in the second year.

Long flights can receive discounts during their second and third years.

Extra flights and cargo services also receive special discounts.

The rule now helps a route from Navi Mumbai even if the same destination already has flights from Mumbai airport.

The airport hopes these incentives will make airlines more willing to start international passenger and cargo services.

Key facts

New international routes
100% landing-charge waiver in the first year
Short-haul definition
Routes up to 5,000 kilometres
Long-haul definition
Routes exceeding 5,000 kilometres
Second-year passenger discounts
50% for short-haul and long-haul routes
Third-year long-haul discount
25% waiver on landing charges
Additional frequencies
First-year discount of 50% for short-haul and 75% for long-haul services
International freighters
90% first-year waiver and 50% second-year discount

Quotes

Airports Economic Regulatory Authority (AERA)

India’s airport tariff regulator that issued the modified Variable Tariff Plan order

“The airlines have attributed this reluctance to the quantum of aeronautical tariffs notwithstanding the concession granted by the approved variable tariff plan. Further Navi Mumbai airport has highlighted the impact of prolonged geo-political conflicts resulting in higher fuel prices, airspace closure, insurance charges and depressed demand due to which carriers are more risk averse to committing international capacity at new airports.”
thehindubusinessline.com
“Such modification would provide greater opportunities to the airport operator in facilitating the development of international connectivity while ensuring that the benefit of the incentive is linked to the achievement of the intended traffic and utilisation outcomes.”
m.rediff.com

AERA

India’s Airports Economic Regulatory Authority, which regulates airport aeronautical tariffs

“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.”
freepressjournal.in

Sources

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