Rajya Sabha passes Airports Economic Regulatory Authority (Amendment) Bill 2019

The Airports Economic Regulatory Authority of India (Amendment) Bill, 2019 has been passed by Rajya Sabha. The bill seeks to amend Airports Economic Regulatory Authority of India Act, 2008. It is yet to be passed by Lok Sabha.

Salient Features of Amendment Bill

Definition of major airports: The Bill seeks to amend definition of major airport as any aerodrome which has or is designated to have annual passenger traffic of over 35 lakh instead of existing 15 lakh. Currently, major airports with an annual capacity to handle 15 Lakh passengers come under purview of AERA.

Tariff determination by AERA:

At present as per the Act, AERA is responsible for determining-

• the tariff for aeronautical services at different airports every 5 years
• the development fees of major airports
• the passengers service fee.

Moreover AERA can also call for necessary information to determine tariffs and perform any other tariff-related functions, such as amending tariffs if necessary in interim periods.

Amendment Bill adds that AERA will not determine the tariff, tariff structures and development fees, in certain cases. These cases include the case of privatised airports where such tariff amounts were a part of bid document (offered at the time of the privatisation) on basis of which airport operations were awarded.  Although AERA will be consulted by concessioning authority before incorporating such tariffs in bid document, and such tariffs must be notified.

About Airports Economic Regulatory Authority of India

AERA is a regulator that has powers to set tariffs charged at airports.

It was established by Airports Economic Regulatory Authority of India Act, 2008.

It is an independent economic regulator for protection of interests of airports, airlines and passengers.

Function: It regulates tariffs and other charges for aeronautical services provided at civilian airports with annual traffic above 15 lakh passengers. It also monitors performance standard of services across these airports.

Month: Current Affairs - July, 2019