Why in the News?

The Airport Economic Regulatory Authority (AERA) issued a warning to major airports about levying aeronautical charges without approval.

About Airports Economic Regulatory Authority (AERA):

• Airports Economic Regulatory Authority (AERA), established under the Airports Economic Regulatory Authority of India Act, 2008, is a statutory body entrusted with the crucial task of regulating tariffs and associated charges for aeronautical services at major airports.
• This includes overseeing air traffic management, aircraft landing and parking, and ground handling services.
• The designation of an airport as "major" hinges on the 2008 Act, considering an annual passenger traffic threshold of at least 15 lakh.
• An amendment in 2019 elevated this criterion to 35 lakh annual passengers.
• For other airports, tariff determination falls under the purview of the Airports Authority of India (AAI).
• As an independent economic regulator, AERA operates with the objective of creating an equitable playing field, fostering healthy competition among major airports, promoting investment in airport facilities, and ensuring transparent regulation of aeronautical service tariffs.
• This initiative arose from the recognition of the need for an independent regulatory body capable of safeguarding the interests of both service providers and consumers.
• Headquartered in Delhi, AERA's history traces back to a time when most Indian airports were under the governance of the central government.
• The shift towards private sector participation in airport infrastructure development prompted the need for a distinct regulator.
• The Naresh Chandra Committee set up in 1997, recommended the establishment of an independent regulatory authority.
• Subsequently, the Airports Economic Regulatory Authority of India Act, 2008 (AERA Act), was enacted, leading to the creation of AERA.

About Airports Authority of India (AAI):

• Airports Authority of India (AAI), established through an Act of Parliament on April 1, 1995, resulted from the merger of the National Airports Authority and the International Airports Authority of India.
• Entrusted with a significant role, AAI is responsible for creating, upgrading, maintaining, and managing civil aviation infrastructure both on the ground and in the airspace of the country.
• Main Functions of AAI Include
• Construction, modification, and management of passenger terminals.
• Development and management of cargo terminals.
• Development and maintenance of apron infrastructure, encompassing runways, parallel taxiways, aprons, etc.
• Provision of Communication, Navigation, and Surveillance, involving DVOR / DME, ILS, ATC radars, visual aids, etc.
• Provision of air traffic services.
• Provision of passenger facilities and related amenities at its terminals.