The Airports Economic Regulatory Authority of India (AERA) plays a crucial role in regulating the aviation sector in India, focusing on airport tariffs, revenue determination, and ensuring efficient operations. Here’s an overview of its key functions and roles:

1. Regulation of Airport Tariffs
Tariff Setting: AERA is responsible for setting and regulating tariffs for various airport services, including landing, parking, and passenger services. It ensures that these tariffs are reasonable and do not lead to monopolistic practices.
Periodic Review: The authority reviews and revises tariffs periodically, considering factors like inflation, airport performance, and the need for financial viability for airport operators.
2. Determination of Aeronautical and Non-Aeronautical Revenue
Aeronautical Revenue: This includes revenue generated from services directly related to aircraft operations, such as landing fees, parking charges, and terminal usage fees. AERA ensures that these charges are set in a manner that supports the growth of aviation while being fair to airlines.
Non-Aeronautical Revenue: This revenue comes from sources not directly related to aircraft operations, such as retail concessions, advertising, and property leases. AERA monitors the fairness and transparency in the way non-aeronautical revenues are generated and utilized, ensuring that they contribute to the overall efficiency of airport operations.
3. Promotion of Fair and Efficient Operations
Efficiency and Quality: AERA promotes efficiency in airport operations by encouraging best practices and ensuring that services are provided cost-effectively. This includes overseeing the quality of services and ensuring that airports meet regulatory standards.
Dispute Resolution: The authority handles disputes between stakeholders, including airlines and airport operators, ensuring that conflicts are resolved in a manner that upholds fairness and operational efficiency.
Transparency and Accountability: AERA works to ensure that airport operators are transparent in their operations and financial dealings. This includes enforcing compliance with regulations and ensuring that the financial practices of airports are open and accountable.
4. Strategic Development and Policy Formulation
Policy Recommendations: AERA provides recommendations to the government regarding policy changes and strategic initiatives in the aviation sector. This helps in shaping policies that foster growth and sustainability in the sector.
Long-term Planning: The authority engages in long-term planning to address emerging challenges in the aviation industry, ensuring that the regulatory framework evolves to meet future needs.
In summary, AERA’s role is critical in balancing the interests of airport operators, airlines, and passengers, ensuring that the aviation sector in India operates efficiently and fairly. Through its regulatory functions, it helps create a competitive environment that supports the growth and development of the aviation industry.