AERA plans uniform, tariff-linked performance standards for major airports

New Delhi, Aug 25 (PTI) Regulator AERA plans to put in place a uniform, balanced and tariff-linked performance standards framework for major airports that will provide incentives for improved services as well as rebates for non-compliance by airport operators.

After a detailed study that covered a raft of aspects, including existing service quality requirements and global frameworks, the Airports Economic Regulatory Authority (AERA) has prepared a draft framework for performance standards at major airports in the country.

The framework will have 32 objective parameters, including those pertaining to airport operations, and 18 subjective parameters such as those related to the quality and reliability of passenger feedback.

Major airports handle more than 1.5 million passengers annually.

Currently, there are more than 160 operational airports in India, which is one of the world's fastest-growing civil aviation markets, and the government has ambitious plans to have 200 more airports in the next two decades.

AERA has come out with the draft consultation paper on 'Formulation of Performance Standards of Major Airports relating to Quality, Continuity and Reliability of Service and Associated Activities'.

"In addition, these will be linked to airport tariffs through a balanced framework that incorporates both rebates for non-compliance and incentives for encouraging continuous service improvement for exceeding benchmarks while ensuring compliance," AERA said.

Airport services are characterised by natural monopoly or limited competition, wherein users have limited options on service providers, AERA said and added that in such an environment, the role of the regulator extends beyond tariff determination.

"In environments where competitive alternatives are limited, performance monitoring serves as a proactive mechanism to support continuous service enhancement," the watchdog said.

While pricing frameworks have traditionally been a central focus of regulatory oversight, AERA said the quality of service delivered is equally critical, as it directly influences user satisfaction and the overall efficiency of airport operations.

The focus of the proposed framework is to have uniform, comprehensive, future-ready, reliable and technologically-enabled performance standards that enhance passenger experience across all airport touchpoints through a technologically-advanced and inclusive approach.

The watchdog noted that there exists a compelling need to establish a structured, uniform, enforceable framework of service quality standards across all major airports in the country, comprising both objective metrics and user-centric indicators, that can be embedded within tariff regulation through ongoing performance monitoring.

According to the regulator, the absence of a harmonised framework not only impedes effective oversight but also results in an uneven passenger experience and regulatory asymmetry.

Currently, airports operated by the Airports Authority of India (AAI) are guided by the service quality requirements outlined in the existing AERA guidelines, as well as the provisions of the National Civil Aviation Policy, 2016.

Comments from stakeholders on the draft framework have been sought till September 24. PTI RAM MR