AERA to fix fuel supply infrastructure charges at Indian Airports

The Airports Economic Regulatory Authority of India (AERA), proposed by the government to regulate airport tariffs, will now have the authority to look into charges related to fuel supply infrastructure at the country's airports. The authority will also have an ombudsman to look into user grievances. Amendments to this effect in the AERA Bill of 2007, were cleared by the Union Cabinet , last week in New Delhi . The draft of the AERA Bill proposes that the authority will fix a tariff structure for aeronautical services, including capital expenditure incurred and timely investment in improvement of airport facilities. The proposed AERA will also determine the amount of User Development Fees (UDF) at airports and the Passenger Service Fees (PSF) levied by operators. Terminal 1A caters to domestic flights of the national Indian Airlines and its subsidiary, Alliance Air.

The authority will also be enabled to consider non-aeronautical revenues while fixing tariffs for aeronautical services. The proposed regulator does not have the mandate to regulate non-aeronautical revenues. Some of the amendments are based on the suggestions of the Parliamentary Standing Committee on Transport, Tourism and Culture. In some cases, the government has gone beyond the recommendation of the panel. In case of non-aeronautical revenue, the standing committee's recommendations have been partially accepted. The proposed amendments will be tabled in Parliament during the forthcoming winter session.

The Ministry of Civil Aviation (MoCA) has proposed setting up of a regulator to create a level-playing field for the airport operators in the country and protect the interests of airlines, passengers and other users. The regulator will also set quality standards at airports and monitor it. With major airports going into private hands, the Ministry feels that the regulator is necessary.