MoF wants airports regulator to set global services standards

NEW DELHI: The Proposed Airport Economic Regulatory Authority (AERA) should fix new standards as per international practices and revise them constantly, feels the finance ministry. Apart from fixing tariffs for various airport facilities and monitoring existing standards of services, the regulator should play a pro-active role in setting standards rather than letting the government do it, according to finance ministry officials.

While the AERA Bill has been referred to a group of ministers (GoM) headed by external affairs minister Pranab Mukherjee, the finance ministry is of the view that standards of services provided by airport managers should not be set by the government.

Since the Airports Authority of India (AAI) –– owned by the government –– is a major airport services provider, the Centre cannot be seen as impartial in setting the standards, officials of the finance ministry feel.

While some private players have entered the segment, AAI continues to own and manage the majority of airports in India and is likely to be a significant player in future too, at least in the case of non-metro airports.North Block has also pitched in

for an institutionalised mechanism for presenting consumer grievances before the proposed regulator. Consumers as a group should be one of the stakeholders in AERA. They should be able to directly influence regulatory decisions, as is the case with telecom regulator TRAI, it is felt. These views have already been conveyed to the civil aviation ministry, officials told ET.


While the objections of the then defence minister Pranab Mukherjee were instrumental in referring the AERA bill to the group of ministers (GoM), the finance ministry and the Planning Commission had also expressed their reservations, it is learnt.

The defence-related issues include airspace control and operation of civil enclaves in defence airports.The finance ministry reckons that the government might not be able to keep pace with the dynamic changes in airport services globally. The job should be given to the regulator which will have specialised knowledge in the area.