AERA to initiate consultation process for new tariff structure

Hyderabad: Airport Economic Regulatory Authority (AERA) is set to initiate consultation process for putting a new tariff structure in place for airports next month and it roll out by August, the Authority said today.
AERA chairman Yashwant Bhave said the regulator will follow capital-asset pricing methods to determine tariff and it will be different for each airport.
"The new structure will be effective from July or August. We will follow capital-asset pricing model to determine the tariff so that the return on investment for airport operators will be commensurate with the risk. It will be different for different airports," Bhave told reporters on the sidelines of the GMR Aviation Security Summit here.
He said they would take into consideration the viability of airport, quality of services and concession agreements signed with respective governments while determining the tariff.
"All these factors will come up for discussion in the consultation paper and everybody will have a chance to comment," he said.
GMR and GVK, operators for Delhi and Mumbai airports, respectively, approached the appellate tribunal against the AERA's recent order to regulate airport revenues.
27/03/11 PTI/Economic Times

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Categories: Airports Mar 2011, Indian Aviation- In General Mar 2011