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2018-11-01

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Indian Economy
www.prsindia.org

Transport / Tourism / Urban development

The Airports Economic Regulatory Authority of India (Amendment) Bill, 2018

Highlights of the Bill

  • The Act defines a major airport as a civilian airport with annual passenger traffic of over 15 lakh.  The Bill increases this threshold to over 35 lakh.
  • Under the Bill, AERA will not determine: (i) the tariff, (ii) tariff structures, or (iii) the development fees, in cases where these amounts were a part of the bid document on the basis of which the airport operations were awarded.

Key Issues and Analysis

  • AERA was set up to regulate the growing competition in the airline industry, and to provide a level playing field among different categories of airports.  Under the Bill, AERA will now regulate tariffs at fewer airports.  It may be argued that instead of strengthening the role of the regulator, its purview is being reduced.  Further, certain objectives of the Bill could be achieved by improving AERA’s capacity.
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Current Status: Pending
Ministry: Civil Aviation
Stage Date
Introduction Jul 18, 2018
Com. Ref.
Com. Rep.
Lok Sabha Introduced
Rajya Sabha
Relevant Links
AERA Brief.pdf  PRS Legislative Brief  (435 KB)
AERA 2018 Bill Summary.pdf  PRS Bill Summary  (405 KB)
The Airports Economic Regulatory Authority of India (Amendment) Bill, 2018.pdf  Bill Text  (23 KB)
Hindi Airports Economic Regulatory Authority of India (Amendment) Bill, 2018.pdf  बिल कॉपी  (206 KB)
 

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