Merchant, small cargo airports free to fix charges

Small private sector airports - known in trade parlance as merchant airports - would have the freedom to fix all aeronautical charges, including passenger fee.

NEW DELHI: Small private sector airports — known in trade parlance as merchant airports — would have the freedom to fix all aeronautical charges, including passenger fee. Unlike other airports, merchant airports would not come under the purview of the Airports Regulatory Authority of India (Aera).

Airports handling less than 1.5 million passengers annually would lie outside the purview of the regulatory authority. Small cargo airports would also enjoy this exemption.

“All aeronautical charges at cargo airports, including private ones, would be fixed by the operators and Aera would not intervene in setting any tariff at these airports. A private airport having licence to handle commercial aircraft would also not be regulated by the proposed agency till it starts handling 1.5 million passengers annually,” a senior official in the ministry of civil aviation said.

As dedicated cargo airports are yet to take off in the country, this category does not find mention in the Aera Bill. But once the need arises, changes would be notified.

Civil aviation minister Praful Patel introduced a Bill to set up Aera in Parliament recently. The move is aimed at creating a level playing field for different categories of airports, including those operated by private operators.

The need to create a regulator arose due to frequent complaints of mismatch between aeronautical charges levied by the Airports Authority of India (AAI) and the quality of services rendered at airports controlled by it. Most civil airports, including civil enclaves at defence airports, are controlled by AAI. It fixes the aeronautical charges for the airports, prescribes the performance standards of all airports and monitors them.
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Recently, a section of airline operators complained of airports charging higher fee for landing and other ground handling services. The proposed regulatory authority would regulate tariffs at all the 17 international airports, including Kochi and Amritsar, and the majority of non-metro airports.
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