The Parliament on August 4, 2021, announced the Airports Economic Regulatory Authority of India (Amendment) Bill, 2021 after the Rajya Sabha passed it after a short review amid protests by the opposition on various issues.
The Lok Sabha had moved the bill earlier on July 29, 2021. The bill proposes to change or improve the Airports Economic Regulatory Authority (AERA) of India Act, 2008 and tries to support smaller airports to increase air connectivity to approximately remote and far-flung areas.
Airports Economic Regulatory Authority of India (Amendment) Bill, 2021
•The Airports Economic Regulatory Authority of India (Amendment) Bill, 2021, was presented in the Lok Sabha in March 2021.
Amendment of AERA Act 2008 – Significance
•The Bill will improve the Airports Economic Regulatory Authority (AERA) of India Act, 2008, by adjusting the interpretation of ‘major airport’ under the AERA Act 2008.
•The Amendment of AERA Act 2008 will now introduce an airport with yearly passenger traffic of 35 lakh as a ‘major airport’ as related to the previous traffic threshold of 15 lakh.
•The Amendment will also allow privatization of smaller loss-making Airport Authority of India (AAI)-run airports by joining them with larger profit-making airports. At first, the progress to privatize only larger profit-making airports was fought with analysis that this move would leave AAI with only loss-making airports.
•The Amendment will also allow tariff mania of more than one airport. As of now, the Airports Economic Regulatory Authority (AERA) defines tariffs and other management for aeronautical services of a single airport.
