Aviation ministry gets sway over airport regulator

New Delhi: In a move that could have far reaching implications on India’s fast growing aviation sector, the ministry of law and justice has given an opinion reasserting the supremacy of the aviation ministry over the airport regulator on policy issues.
The Airport Economic Regulatory Authority (Aera) was set up in 2009 to regulate tariff for aeronautical services provided at major airports in India and determine other airport charges. Aera is in the process of drafting a tariff structure for airports. The latest advice means that the ministry will have a greater say on determination of airport charges.
The law department’s advice brings to an end the bitter turf war between the ministry and the Aera that began after theregulator had sought and received an opinion from the additional attorney- general last November that the powers of the central government to issue directions to Aera was not “unbridled” and was restricted to the subjects that are “in the interest of sovereignty and integrity of India, the security of the state, friendly relations with foreign states, public order, decency or morality.”
However, the law ministry has now said: “The Aera Act gives the government an independent and additional power to issue directions on subject of policy”. Aera chief Yashwant Bhave declined comment on the issue.
29/06/11 Tushar Srivastava/Hindustan Times

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Categories: Airports Jun 2011