Editorial Analysis || New models for airport management

• Government has proposed an amendment bill to Airports Economic Regulatory Authority of India Act.

• India is emerged as the third largest domestic aviation market in the world.

• The Airports Economic Regulatory Authority of India Act, 2008 provides an independent authority that works to protect the interests of:

• airports,

• airlines and passengers,

• regulate tariff for aeronautical services at airports.

• Aeronautical services include

• navigation,

• surveillance and supportive communication for air traffic management;

• services for the landing, housing or parking of an aircraft;
ground safety, fuel and handling services.

Why an amendment need for?

• The Airports Economic Regulatory Authority has been under pressure
with an increase in the number of private operators.

• Many of the major airports now work under public-private partnerships.

• If too many airports come under AERA, determining charges and monitoring service standards of major airports will be difficult.

• The airport project is awarded to the concessionaire who offers the
lowest tariff so AERA is not required to fix charges after the award of
the project.

==> The Airports Economic Regulatory Authority of India (Amendment) Bill, 2018, proposes to:

• Amend the definition of “major airport” as any airport with
passengers in excess of 3.5 million from the existing 1.5 million.

• Update Section 13 of the 2008 Act in tune with the current business
models leading to changes in the tariff for aeronautical services at
major airports.


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