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DAILY NEWS ANALYSIS

  • 05 August, 2021

  • 6 Min Read

The Airports Economic Regulatory Authority of India (Amendment) Bill, 2021

The Airports Economic Regulatory Authority of India (Amendment) Bill, 2021

  • The Airports Economic Regulatory Authority of India (Amendment) Bill, 2021 seeks to amend the Airports Economic Regulatory Authority of India Act, 2008.
  • The 2008 Act established the Airport Economic Regulatory Authority (AERA). AERA regulates tariffs and other charges (such as airport development fees) for aeronautical services rendered at major airports in India.
  • Major airports: The 2008 Act designates an airport as a major airport if it has an annual passenger traffic of at least 35 lakh. The central government may also designate any airport as a major airport by a notification. The Bill adds that the central government may group airports and notify the group as a major airport.
  • The bill allows tariff determination of a 'group of airports' by way of amending the definition of 'major airport.'
  • The bill amends the provisions of the law in relation to tariffs for single airports.
  • The intention of the government is to develop not only the high traffic volume & profitable airports but also the low traffic volume of non-profitable airports.
  • The revenue earned by AAI from these airports will be utilized for the development of airports in Tier-II and Tier-III cities. It would help encourage the development of smaller airports.
  • This approach would help in the development of more airports through the PPP route thus, expanding the air connectivity to relatively remote and far-flung areas.

Source: PIB


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