The Airports Economic Regulatory Authority of India Act, 2008

The Airports Economic Regulatory Authority of India Act, 2008, is a crucial piece of legislation that provides for the establishment of the Airports Economic Regulatory Authority (AERA). This Act aims to regulate tariffs and other charges for aeronautical services at airports, ensuring that these services are provided at reasonable and transparent rates. It also seeks to monitor the performance standards of airports, promoting efficiency and quality in the aviation sector. The Act is essential for balancing the interests of service providers and users in the aviation industry.

1: Act Background and Ministry

The Airports Economic Regulatory Authority of India Act, 2008, was enacted to address the need for an independent regulatory body to oversee the economic aspects of airport operations. The Act aims to ensure that tariffs and charges for aeronautical services are fair, reasonable, and transparent. The Ministry of Civil Aviation oversees this Act, reflecting its responsibility in regulating the economic aspects of the aviation sector. The Ministry plays a vital role in formulating policies, implementing the act, and ensuring the AERA’s efficient functioning.

2: Enactment Date, Number of Chapters, and Sections:

The Act was enacted on December 5, 2008, and is officially known as Act No. 27 of 2008.

• The Act is structured into seven chapters that address various aspects of the AERA and its functions.

• It includes a total of 55 sections, along with a schedule, covering definitions, establishment of the Authority, its powers, functions, financial matters, penalties, and other miscellaneous provisions.

• The Act also addresses the establishment of an Appellate Tribunal.

3: Act Governed By:

The Act is primarily governed by:

• The Airports Economic Regulatory Authority of India (AERA): Established under Section 3, this is the main regulatory body responsible for determining tariffs and charges for aeronautical services.

• The Central Government: The Central Government has significant powers under the Act, including appointing members of the Authority, issuing directions, and approving regulations.

• The Appellate Tribunal: Established under Section 17, this body hears appeals against orders of the AERA.

• The Chairperson and Members: The Authority is composed of a Chairperson and two other members, who are appointed by the Central Government.

4: On Whom It Is Applicable:

The Act applies to:

• All airports where air transport services are operated or intended to be operated, other than military airports.

• All private airports and leased airports.

• All civil enclaves.

• All major airports.

• All service providers offering aeronautical services.

• All airport users availing of passenger or cargo facilities.

5: Penalties/Punishments:

The Act includes provisions for penalties and punishments to ensure compliance:

• Wilful failure to comply with orders of the Appellate Tribunal can lead to a fine and additional fines for continuing defaults.

• Non-compliance with orders and directions under the Act can result in fines and additional fines for continuing contraventions.

• Non-compliance with orders of the Authority or the Appellate Tribunal can lead to fines and additional fines for continuing failures.

• The Act also includes provisions for offences by companies and government departments.

• The Act empowers the Authority to impose monetary penalties for non-compliance.

6: Important Pointers:

• The Act establishes the Airports Economic Regulatory Authority of India (AERA) as a body corporate.

• It defines key terms such as “aeronautical service,” “airport,” “airport user,” and “major airport.”

• The Act outlines the functions of the AERA, including the determination of tariffs, monitoring of performance standards, and regulation of airport charges.

• It establishes an Appellate Tribunal to hear appeals against orders of the AERA.

• The Act empowers the AERA to call for information, conduct investigations, and issue directions.

• It includes provisions for the seizure of documents and records related to inquiries.

• The Act provides for the Central Government to make grants to the AERA and to oversee its financial management.

• It emphasizes the importance of transparency and stakeholder consultation in the AERA’s decision-making process.

• The Act provides for the protection of actions taken in good faith by the AERA and its officers.

• It empowers the Central Government to issue directions to the AERA and to supersede it in certain circumstances.

• The Act allows the Central Government to make rules and the AERA to make regulations to carry out its provisions.

7: Download Act Copy