• 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:
• airlines and passengers,
• regulate tariff for aeronautical services at airports.
• Aeronautical services include
• 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.