aera’s aPathY towards sMall aircraFt oF ga ba industrY

AERA

AERA needs to introspect on truly discharging its role, especially for the small aircraft operators

AERA’s ApAThy TowARds smAll AiRcRAfT of GA/BA indusTRy

As of now, AERA has lost its relevance to small aircraft operators and, seeking legal recourse seems the only option left with them.

by RAjesh K. BAli

The ‘Airport economic regulAtory Authority’ (AERA) was formed in the year 2009 after enactment of AERA Act by Indian parliament in 2008. AERA’s sole function is to determine the optimal charges for aeronautical services at public airport, which were hitherto being fixed by Airport Authority of India (AAI), with the approval of the Central Government. With formulation of Airport Infrastructure Policy in 1997, participation of private sector was allowed in management, operations and development of public airports. The first two public airports to be privatised were the most busy Delhi and Mumbai airports. AERA came out with its first ‘Order’ on aeronautical tariff for Mumbai International Airport (MIAL) in January 2013 and, that was the beginning of a long drawn battle for justice and equitable treatment for the small aircraft industry comprising non-scheduled and private operators.

AERA’s powers and functions have been clearly defined in the AERA Act para 13 as the ‘authority’ to determine tariff for aeronautical services at public airports. Further, para 2 of AERA Act gives the list of services, provided by the airports, that have been unambiguously defined as ‘aeronautical’. Ground Handling (GH) services and use of ‘hangars at commercially operational airports on hourly basis (housing), though clearly defined as aeronautical services, are not being determined by the ‘authority’ as per provisions of AERA Act para 13. Tariff of these two aeronautical services, GH and ‘housing’ on hourly basis, directly affects only the operators of small aircraft registered under non-scheduled and GA category. The airlines operators, because of larger fleet of aircraft, and fixed schedule, have own ‘ground handling’ staff and

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