Wider jaws and sharper teeth for airports regulator

New Delhi, August 29: The Cabinet on Friday cleared 11 amendments to the Airport Economic Regulatory Authority (Aera) Bill, giving more teeth and a wider sweep to the regulator. The bill gives the regulator powers to determine charges for all airport related activities across the country and to slap penalties for non-compliance. Of the 11 amendments made to the original bill—which was cleared in April this year—the ministry of civil aviation considers five to be very significant.

These include the enhancement of the regulator’s power to decide whether or not airport operators can use other charges to cross-subsidise aeronautical charges. While core service charges like landing, parking, communication, navigation and air traffic control were the monopoly of the airport operator, non-core services like office space, and food, among others, denote non-aeronautical services.

The cabinet has also included cargo and ground handling in the ambit of the regulator. A civil aviation ministry statement issued after the Cabinet meet said this was done as these services have a monopolistic nature.

The fuel supply infrastructure at airports has also been brought under Aera’s purview. The regulator will now cover all airports across the country irrespective of their size or ownership. Earlier Aera’s purview was restricted to airports with a capacity of more than 1.5 million passengers, which meant just the 11 major airports. These airports generate 85 per cent of the revenue and passenger traffic in the country while the balance 78 operational airports handle less than 15 per cent of the passenger traffic.

According to analysts, the changes gives Aera, powers on par with the Telecom Regulatory Authority of India (Trai) that will set quality standards and ensure a level-playing field.

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