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The Centre has rolled out a series of major aviation-sector reforms aimed at reducing operational costs for airlines, stabilising fuel prices and supporting long-term growth in air travel across the country. Against this backdrop, speaking at ABP Network's India@2047 Conclave during the session "UDAAN 2.0: Next Chapter of Aviation Growth", Union Civil Aviation Minister Kinjarapu Ram Mohan Naidu outlined Cabinet-approved reforms to cap ATF costs, waive operational charges, stabilize fuel prices, strengthen safety, expand fleets, boost competition, and build long-term aviation infrastructure.

Cabinet Clears Measures To Stabilise Aviation Fuel Costs

Among the key decisions approved by the Cabinet is a mechanism to cap the impact of Aviation Turbine Fuel (ATF) prices at 25 percent. The government has also announced a 25 percent waiver on landing and parking charges, a move aimed at reducing operational expenses for carriers.

In addition, oil marketing companies will be given access to a ₹10,000-crore fund pool designed to cushion the impact of fluctuations in ATF prices and ensure greater stability in fuel supply and pricing.

"The Cabinet has passed these initiatives today," Naidu said while outlining the government's latest interventions in the sector.

The measures come at a time when airlines have been facing pressure from rising costs and disruptions linked to global energy market volatility.

Tariff Monitoring Unit To Check Unreasonable Price Spikes

The minister said the government would closely monitor pricing trends to prevent excessive increases that could burden airlines and passengers. He said, "If prices exceed reasonable limits, the Tariff Monitoring Unit will ensure penalties are imposed."

Naidu emphasised that making air travel accessible to a broader section of society remains a key objective of the government.

More Competition Expected In Indian Aviation

The Civil Aviation Minister expressed confidence that the Indian aviation market would witness the entry of additional carriers over the next two years, creating a more competitive environment.

He said, "Different classes are entering air travel. We definitely want competition and multiple airlines. In the next 2 years, we will operate more airlines for sure"

He pointed to expanding fleet orders as evidence of growing confidence in the sector. Referring to Akasa Air's expansion plans, Naidu noted that the airline has ordered 150 additional aircraft, underscoring the strong growth potential of the Indian market.

Building Infrastructure For The Next 15 Years

Naidu said the government's aviation strategy extends far beyond immediate challenges and is focused on creating capacity for future growth. He said, "The ecosystem we are building today is planned with a vision for the next 10–15 years."