IATA criticises changes to the powers of India's Airports Economic Regulatory Authority

IATA India country director Amitabh Khosla, via the association's official blog, stated (29-Aug-2019) India's decision to lessen the powers of its Airports Economic Regulatory Authority (AERA) "is not in the interests" of passengers, airlines or the Indian government. IATA reported the bill has changed the definition of a "major airport" in India, from those serving 1.5 million passengers p/a to 3.5 million p/a. In addition, the amendment enables the awarding of airport contracts on the basis of pre-determined tariffs. IATA noted the changes lessens AERA's remit, removing key airports such as Amritsar and Nagpur from its auspices and also deviate from the basic ICAO principle that there should be a relation between costs and charges. He noted that pre-determination of tariffs "could lead to a situation in which consumers are excessively charged for the services being offered", leading to a situation where charges yield will have "no correlation to capital investments in the airport" and that the operator has "limited incentives to make appropriate investments" to benefit consumers. [more - original PR]