India's Airports Economic Regulatory Authority (AERA) has proposed a structural shift in airport pricing, suggesting that operators increase their reliance on non-aeronautical revenue to offset passenger charges.
The regulator is calling for a review of the National Civil Aviation Policy (NCAP) 2016 tariff framework, aiming to reduce the burden of user development fees and other levies on travellers.
The proposal targets the balance between aeronautical income, derived from landing and passenger fees, and non-aeronautical revenue, which includes retail, advertising, and parking.
By encouraging airports to maximise commercial earnings, AERA intends to create headroom for lowering direct charges to airlines and passengers.
This move aligns with broader industry efforts to improve connectivity and affordability in the aviation sector.
The regulatory shift comes as airlines seek to restore lower airfares and expand route networks.