Smart Regulations by AERA: Raising the Bar for Air Travellers

Across the world — from the Asian Development Bank to the Wharton School and the World Economic Forum — policy makers and thinkers are recognising the transformative potential of smart regulations.

- Gurmukh Singh Bawa Senior Aviation Consultant

They enhance efficiency, reduce friction among stakeholders, and ensure that growth is both sustainable and inclusive. India too is beginning to embrace this philosophy. A strong example comes from the Airports Economic Regulatory Authority of India (AERA), whose recent initiative has the potential to change the way we experience air travel.

In a recent public notice, AERA announced its intent to formulate “Rules and Performance Standards” for major airports - defined as those handling over 3.5 million passengers annually. These standards cover quality, continuity, and reliability of service and associated activities, alongside the issue of tariffs. More importantly, this step is not merely a compliance measure. It is a conscious attempt to prioritise the flier's experience recognising that the passenger is the true customer who ultimately pays for everything at airports and on airlines.

LINKING TARIFFS WITH SERVICE

What makes this initiative unique is the direct connection between tariffs charged and services delivered. This means that airport operators will no longer be able to charge fees without ensuring visible and measurable service quality. For passengers, this could translate into very real improvements. In the past, gaps in infrastructure and poor service delivery often led to chaos at airports, sometimes necessitating ministerial intervention. AERA's move makes such lapses harder to ignore. Just as airlines are measured for On-Time Performance (OTP), now airports and other stakeholders too will be held accountable.

By adopting the well-known “carrot-and-stick” approach, AERA is introducing both incentives and penalties. Good performance will be rewarded, while lapses will attract consequences. This proven method aligns the interests of stakeholders with organisational objectives and, ultimately, passenger satisfaction.

ENSURING INCLUSIVE FACILITIES