The Airports Economic Regulatory Authority (AERA) will be set up through a legislation by Parliament in the ongoing Budget Session of Parliament.
NEW DELHI: Seeking to set quality standards and ensure a level-playing field for all airport operators in the country, government on Thursday night cleared a long-awaited proposal to establish an economic regulator for airports.
The Airports Economic Regulatory Authority (AERA), to be set up through a legislation by Parliament in the ongoing Budget Session of Parliament, would also fix the tariff structure for aeronautical services for five years, Information and Broadcasting Minister P R Dasmunsi told reporters here after the Cabinet meeting chaired by the Prime Minister.
The need for a regulator was being increasingly felt as several major airports have gone into private hands, with the privatised Kochi having started functioning already.
The airports in Delhi and Mumbai along with the greenfield ones coming up in Bangalore and Hyderabad through public-private partnership are expected to become operational by 2008.
Besides fixing and approving the tariff structure for aeronautical services, the AERA is also expected to monitor pre-set performance standards at all airports in the country.
The draft AERA Bill proposes that the authority would determine tariff structure for aeronautical services, including capital expenditure incurred and timely investment in improvement of airport facilities.
It would also determine the quality of services, improving efficiency, besides taking care of concessions offered by the Centre in any MoU.
The airport regulator would also determine the amount of development fees for major airports, the passenger service fee to be levied and also monitor the performance standards relating to quality and reliability of services.
It would also have powers to penalise any company or airline or government departments to comply with its orders or non-compliance of directions and other offences.
It is understood that the draft AERA Bill has proposed hefty fines of up to Rs one lakh with provision to double the fine in case of subsequent offences.
The draft says that the authority would comprise of a chairperson and two others, to be appointed by the government, from among people who have adequate knowledge and professional experience in aviation, economics, commerce and consumer affairs. The members would be whole-time appointees.
The proposed authority would ensure a level-playing field for all categories of airport operators, besides overseeing and dealing with natural monopoly and common carrier segments of airports, the sources said.
The AERA would also try and promote investments in airports and deal with the level of charges for several aeronautical activities like route navigation facilities, terminal navigation and landing.
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