Airports regulator pushes for financial autonomy

The Act,which was passed last year,states that the Central government may,after due appropriation,make to the authority grants of such sums of money as are required to be paid for the salaries and allowances payable to the chairperson and other members,and the administrative expenses. Former consumer affairs secretary Yashwant S Bhave was recently appointed chairperson of AERA.

Aviation industry experts opine that financial autonomy for the authority will play an important role in ensuring transparency and functional independence of the regulator. “The Indian regulator could take a cue from UK’s civil aviation authority,which is funded by all the users and stakeholders like airports. Within the authority,the government can appoint the chairperson and members to handle various regulatory functions. Essentially,the government should play the role of an enabler and policy maker and financial autonomy should be provided to the regulator,” said Centre for Asia Pacific Aviation chief executive officer Kapil Kaul.

Under the Act,the authority has been allowed to impose a penalty for willful failure to comply with its orders,which may extend to Rs 1 lakh,and in case of a second or subsequent offence,the fine may go up to Rs 2 lakh. If there is continuing contravention,additional fine up to Rs 2 lakh for every day may be imposed during which such default continues.

In case of non-compliance of its orders and directions,the authority can slap a fine of up to Rs 1 lakh,which could increase to Rs 2 lakh if found guilty a second time,and in the case of a continuing contravention,an additional fine of up to Rs 4,000 for every day during which the default continues.

AERA has been mandated to determine tariffs for aeronautical services,development fees,and passenger services fees for airports across the country while ensuring transparency by holding consultations with various stakeholders and documenting all decisions. AERA recently held a review meeting of the development fee levied at the Delhi international airport.