AERA mulls linking tariffs to performance of airports

Airports Economic Regulatory Authority (AERA) is considering a proposal on linking tariffs to the performance of respective airports, according to a senior official.

The watchdog, which decides on charges for various airports, is also looking at ways to ensure that there is a system in place to continuously monitor the tariffs subject to certain criteria.

"We will like to link performance and the tariff that these airports charge. We would like to monitor it properly on an objective basis," AERA Chairperson S Machendranathan today said.

He was speaking at the 2018 SITA India Air Transport Summit.

"We would like to measure it (tariffs) on a continuous basis and possibly using technology. We would like to reward or incentivise or if any airport is going down, we could (even) penalise. This is something which we are looking at," he said.

The proposal also comes at a time when the Civil Aviation Ministry is looking to operationalise more number of airports amid rising passenger demand and infrastructure constraints.

"At present there are guidelines on assessing the performance and service quality standards (of airports) but we don't know how to measure them," Machendranathan said.

Currently tariffs are decided on the basis of certain models for a specific period of time.

AERA was set up as an independent regulator for protecting the interests of airports, airlines and passengers.