Airport Economic Regulatory Authority

News: The Public Accounts Committee (PAC) of Parliament has asked the Airport Economic Regulatory Authority to submit a detailed response on how User Development Fee charges are calculated. 

About Airport Economic Regulatory Authority

 

• It is a statutory body established under the provisions of the Airports Economic Regulatory Authority of India Act, 2008. 
• The primary task of the authority is to regulate tariff for aeronautical services, determine other charges for services rendered at major airports and monitor performance standards of major airports. 
• Other functions of Authority are: 
  • Focus on economic and viable operations of major airports. 
  • Determine passenger service fee levied under Rule 88 of the Aircraft Rules, 1937. 
  • Maintain performance standards relating to quality, continuity and reliability at major airports of the country. 
  • Promoting healthy competition among all major airports. 
• The authority functions under the Ministry of Civil Aviation. 

Key Facts about India’s Aviation Sector  As per the International Air Transport Association (IATA), India is expected to overtake China and the United States as the world’s third-largest air passenger market by 2030.  The number of operational airports in the country has doubled from 74 in 2014 to 157 in 2024.  The goal is to increase this number to 350-400 by 2047.  The domestic air passengers have more than doubled in the past decade.  The international and domestic passenger traffic during FY25 (till September 2024) stood at 196.91 million.