The government cut landing and user charges at airports and waived landing charges for smaller aircraft. Landing and navigation charges account for not more than 5 per cent of airlines' operating expenses.
According to civil aviation ministry officials, the government expects the airlines to pass on the benefits of the lower charges to air travelers.
As per the decisions taken by the ministry of civil aviation, the landing charges have been pruned by 15 per cent for domestic flights, subject to the condition that airport charges are paid within the credit period of 15 days.
Wherever payments are made beyond the credit period, existing rates would be applicable, an official release said.
An Indian Airlines spokesperson said they were studying the implications of the move since the lowering of landing charges was tied to payment of airport charges within 15 days.
The government also extended the lower airside user charges at five international airports by a year till March 2005. The airports to benefit include Hyderabad, Ahmedabad and Amritsar.
The government had last year brought airside user charges for these airports on a par with domestic airports. The move will not impact airports at Delhi, Mumbai, Chennai, Kolkata and Thiruvananthapuram.
In an attempt to boost low-cost carriers as well as operators flying to smaller places, the government has waived landing charges for operators using aircraft with a maximum certified capacity of less than 80 seats and for helicopters of all types.
These benefits would be available to ATRs and Dorniers. Helicopters and aircraft having capacity up to 80 seat have been exempted from landing charges with a view to encourage connectivity to smaller places, the release said.
Also route navigation facility charges with respect to aircraft having maximum all-up-weight of up to 10,000 kg have to be levied at 20 per cent of the applicable rates of the weight-cum-distance formula and for over 10,000 kg to 20,000 kg would be levied at 40 per cent of applicable rates.
Dorniers, which have a used-up weight of about 6,000 kg and ATR, which weighs 17,000 kg would benefit from the move.
"The above measures will bring down the operating costs of the scheduled domestic operators, thereby making the operations more viable," the release said.
It is also likely that the benefits out of the reduced charges may be transferred to passengers by way of lower fares, the government said in the release.