Govt eyes overhaul of airport tariffs, terminal approvals: Report

A panel led by NITI Aayog's Rajiv Gauba has reportedly proposed simpler airport tariffs, self-certification for terminal changes, faster approvals and easier drone rules

A government panel on non-financial regulatory reforms has reportedly recommended scrapping India's item-wise airport tariff structure in favour of a simplified three-category system. According to a report by MoneyControl, which cited people familiar with the development, the panel, led by NITI Aayog full-time member Rajiv Gauba, has also pushed for self-certification of terminal commercial spaces, faster height-clearance approvals near airports, and easier drone certification.

 

These moves are said to be aimed at cutting red tape across aviation and speeding up ease of doing business.

Three categories instead of a dozen charges

Currently, the Airports Economic Regulatory Authority (Aera) signs off on individual tariffs for nearly every airport service such as landing fees, parking charges, User Development Fee (UDF), aerobridge charges, and more. As per the report, the Gauba panel wants this consolidated into three broad heads: landing and parking charges, UDF, and other airport service charges, MoneyControl reported, citing sources aware of the panel's findings.

 

 

According to people MoneyControl spoke to, the logic is that the existing framework is too rigid for airports to use pricing as a competitive tool, whether it is discounting for high-volume routes, seasonal pricing, or incentives to lure new airlines. The panel reportedly studied revenue-cap models used at London Heathrow and Dublin airports, where operators are free to structure charges however they like within an overall regulatory ceiling, and concluded that a similar approach would give Indian airports room to compete without diluting Aera's oversight.

Beyond tariffs: Terminals, height clearances, ground handling and drones

The overhaul isn't limited to pricing. According to the MoneyControl report, the panel wants airport operators to self-certify changes to commercial spaces inside terminals, retail counters, restaurants, lounges, instead of seeking a fresh Bureau of Civil Aviation Security (BCAS) clearance every time a shop or eatery is added or tweaked.

 

The panel's reasoning is reportedly that airport operators already carry ultimate responsibility for security, so a mandatory sign-off for every minor terminal change just slows things down without adding real safety value, provided prescribed standards are still met.

 

Height no-objection certificates for buildings near airports are reportedly in line for an overhaul too. The panel has proposed full automation of rule-based approvals and letting Height NOCs auto-renew for up to 12 years as long as airport conditions don't change. The shift is said to be meant to spare real estate developers years of appeals and uncertainty.

 

On the operations side, the committee wants airlines that already handle their own ground operations to also be allowed to service other carriers at airports where at least two other ground-handling agencies already exist, according to the MoneyControl report. This tweak is expected to sharpen competition and bring down costs. The panel has also reportedly recommended doubling the validity of Foreign Aircrew Temporary Authorisation (FATA), from one year to two, to ease the pilot-shortage crunch many Indian carriers face.

Even the drone sector may get a look-in as the panel is said to have suggested auto-certification for low-risk drones weighing up to 30 kg, subject to testing by authorised agencies. If true, this is likely to cut down on approval timelines. The report also noted that the committee has also laid out an implementation timeline for each of its recommendations.