AERA Proposes Higher Non-Aero Revenue Use to Cut Airport Charges

The regulator observed that the airport sector has matured since the hybrid till was introduced in 2016, with lower business risks and stronger traffic growth, the sources said. Initially, a single till was used before the shift to hybrid till, which was designed to encourage private investment.

Sources cited international practice: the United Kingdom, France, and Spain use the single till model. More than half of nearly 240 airports globally follow that framework, resulting in lower tariffs than those under the hybrid system.

The recommendations are part of AERA’s broader review of the airport economic regulatory framework. Any revised tariff mechanism would require changes to the National Civil Aviation Policy 2016 before implementation, the sources said. The proposal is now open for public comment.

The move, if implemented, would affect airport charges across India, a key input for travel and logistics costs tracked in market analysis. Reduced passenger fees could also pressure airport operators’ revenue from charges, though they would retain a larger share of non-aeronautical income under the current proposal.