The Ministry of Civil Aviation said the move comes as global aviation faces pressure from the ongoing West Asia crisis. Rising crude oil prices have pushed Aviation Turbine Fuel costs sharply higher.
The Ministry has directed the Airports Economic Regulatory Authority to implement the cut at major airports. The reduction has come into effect immediately and will remain in place for three months.
The Airports Authority of India has been asked to implement a similar reduction at non-major airports. The benefit will apply to all domestic flights over the same period.
The government said the measures are expected to reduce airlines' expenses by around Rs 400 crore. This is aimed at helping carriers manage rising operational costs.
Naidu said the government is focused on keeping air travel affordable and operations stable. He added that fare increases are being contained despite a sharp rise in global fuel prices.
The Ministry said it remains in close contact with airlines and airport operators. It added that further steps may be taken depending on the evolving situation.
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