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

In News:The Airports Economic Regulatory Authority of India (Amendment) Bill, 2021 was introduced in Lok Sabha on March 24, 2021.

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

Ministry: Ministry of Civil Aviation
It 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.
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.
Under the present Act, a”major airport” has been defined to mean any airport which has, or is designated to have, annual passengers in excess of three and a half million. However, it does not provide for determination of tariff for a group of airports.
Developing more number of airports through public-private partnership mode would expand air connectivity to relatively remote and far-flung areas.
The government has decided to club or pair airports having profitable and non-profitable airports which could be offered in public-private partnership mode as a package to the prospective bidders.

About Airport Economic Regulatory Authority (AERA)

AERA is a regulator that has the powers to set the tariffs charged at airports.
Sixteen airports will be under the jurisdiction of AERA.
All the other airports which would not be major airports will continue to be looked after by the Ministry of Civil Aviation and the Govt. of India.
All major airports with an annual capacity of handling 1.5 million passengers come under the purview of AERA