The government on Wednesday introduced the much-awaited Bill for setting up of Airport Economic Regulatory Authority (AERA) with the objective of providing a level-playing field amongst all airports.
Introducing the Bill in the Lok Sabha, Civil Aviation Minister Praful Patel said the AERA would foster healthy competition amongst all major airports and encourage investment in airport facilities to regulate tariffs for aeronautical services. At present, the Airports Authority of India (AAI) fixes the aeronautical charges for the airports under its control and prescribes performance standards of all airports.
Once the Bill is passed by Parliament and notification issued, major airports such as Bangalore, Hyderabad, Mumbai, Delhi and those under the AAI’s control will come under the AERA’s jurisdiction.
The Bill’s statement of objects and reasons said at present, the AAI was performing the role of the airport operator as well as the regulator, which results in conflict of interest.
