Draft bill proposes enhanced powers for Airports Economic Regulatory Authority

New Delhi: A draft of the Airports Economic Regulatory Authority (AERA) Bill, likely to be considered by the union cabinet shortly, has proposed that the authority may amend tariffs from time to time, if considered appropriate.

The Airports Economic Regulatory Authority is being set up by the Government to ensure a level-playing field among major airports, and also to bring about competition between them.

With airports beginning to be developed, and managed, by the private sector, such as that at Kochi, which has already made the transition, and those at Delhi, Mumbai, Bangalore and Hyderabad, which are expected to do so by 2008, a need has been felt for a regulating authority, similar to those in other sectors of the economy.

The proposed authority will also be tasked with the responsibility of promoting investment at these facilities, and deal with issues regarding charges to be applied for route navigation facilities, terminal navigation and landing, among others.

The Bill also proposes the setting up of an Appellate Tribunal with the power to levy hefty fines on defaulting individuals and companies. Such an Authority would consist of a chairperson and two persons to be appointed by the central government who will have adequate knowledge and professional experience in aviation, economics, commerce or consumer affairs.