AERA seeks to penalise Bangalore, Hyderabad airports

New Delhi: The Airports Economic Regulatory Authority (AERA) issued show cause notices last week to GVK-run Bangalore International Airport Ltd (BIAL) and GMR-owned Rajiv Gandhi Hyderabad International Airport Ltd (GHIAL) for not furnishing required financial details needed by the Airports Authority of India for fixing airport tariffs by the stipulated time. The airports regulator had approached the appellate tribunal asking it to penalise bot these Bangalore and Hyderabad airport operators.

In a related order, AERA has also sought punishment for Hyderabad airport CFO Sidharath Kapur and Bangalore airport director (finance) B Bhaskar.

Reports suggest that the concerned airports failed to furnish almost all information essential for tariff determination, like revenue from unregulated services, operational and maintenance expenditure, capital expenditure and details related to regulatory asset base.

"The appellant failed to submit not only the complete requisite information /detail/tariff proposal but also crucial components of the requisite information/detail/tariff proposal, which is in complete contravention of the order...of the Hon'ble Tribunal and appears to be an attempt not only to delay but prevent the applicant authority from carrying out its function of determination of tariff...," the notice said.

According to GHIAL officials, the airport has filed tariff in accordance with the dual-till model of economic regulation of airports and not the single-till model, against which it has appealed in court.

AERA had come out with an order on 12 January mandating 'single till' approach to determine returns to operators and airport charges. The model was to be applicable to all major airports in the country, except those at Delhi and Mumbai.

Both BIAL and GHIAL went to court earlier this year appealing against the order.