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Airports Economic Regulatory Authority of India Act, 2008

Chapter III Powers and Functions of the Authority

13. Functions of Authority. -

1.  The Authority shall perform the following functions in respect of major airports, namely:-

a.   to determine the tariff for the aeronautical services taking into consideration-

  i.  the capital expenditure incurred and timely investment in improvement of airport facilities;

  ii.  the service provided, its quality and other relevant factors;

  iii.  the cost for improving efficiency;

  iv.  economic and viable operation of major airports;

  v.  revenue received from services other than the aeronautical services;

  vi.  the concession offered by the Central Government in any agreement or memorandum of understanding or otherwise;

  vii.  any other factor which may be relevant for the purposes of this Act: Provided that different tariff structures may be determined for different airports having regard to all or any of the above considerations specified at sub-clauses (i) to (vii);


b.   to determine the amount of the development fees in respect of major airports;

c.   to determine the amount of the passengers service fee levied under rule 88 of the Aircraft Rules, 1937 made under the Aircraft Act, 1934;

d.   to monitor the set performance standards relating to quality, continuity and reliability of service as may be specified by the Central Government or any authority authorised by it in this behalf;

e.   to call for such information as may be necessary to determine the tariff under clause (a);

f.   to perform such other functions relating to tariff, as may be entrusted to it by the Central Government or as may be necessary to carry out the provisions of this Act.


2.  The Authority shall determine the tariff once in five years and may if so considered appropriate and in public interest, amend, from time to time during the said period of five years, the tariff so determined.

3.  While discharging its functions under sub-section (1) the Authority shall not act against the interest of the sovereignty and integrity of India, the security of the State, friendly relations with foreign States, public order, decency or morality.

4.  The Authority shall ensure transparency while exercising its powers and discharging its functions, inter alia,-

a.   by holding due consultations with all stake-holders with the airport;

b.   by allowing all stake-holders to make their submissions to the authority; and

c.   by making all decisions of the authority fully documented and explained.

Airports Economic Regulatory Authority of India Act, 2008 Back

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