Regulator proposes linking service quality with passenger fees
Dubai: Major airports in India may soon face penalties for service lapses, such as long lines at check-in and security, delays in baggage delivery, and dirty toilets, Times of India reported.
A new proposal by the Airports Economic Regulatory Authority (AERA) aims to hold airports accountable by linking their performance to the fees they charge passengers.
Under the proposed system, major airports that handle more than 3.5 million passengers annually would be rewarded for exceeding performance standards and penalised for failing to meet them. Penalties would come in the form of a reduction in the user development fee (UDF), which is charged to passengers.
This proposal is a response to the fact that passengers often have limited choices when it comes to airports. AERA's paper states that because airport services are a "natural monopoly," it's crucial for the regulator to ensure services are delivered efficiently and transparently.
“These standards are instrumental in safeguarding passenger interests, enhancing accountability, and promoting continuous improvement across airport operations,” AERA noted in the consultation paper, as quoted by TOI.
AERA's new framework proposes a uniform set of performance standards for all major Indian airports. These standards would cover:
Maximum wait times at every step of the journey, including terminal entry, check-in, security, and immigration.
Timeliness of baggage retrieval.
Cleanliness and availability of basic facilities.
Use of technology like Digi Yatra and immigration e-gates.
To ensure compliance, a third-party agency would conduct audits at airports, including those run by private operators, the Airports Authority of India (AAI), and upcoming facilities in Navi Mumbai and Noida.
Airports handling over 60 lakh passengers a year will be placed in a separate category due to differences in infrastructure and operational complexity, the report said.
While airlines, ground-handling agencies, CISF and the Bureau of Immigration manage different parts of the process, airport operators will remain responsible for ensuring adequate counters and infrastructure.
“The aviation ecosystem is inter-linked. Ensuring checked-in baggage reaches the conveyor belt within the allowed time is the airline’s responsibility, but it’s done through a ground-handling agency that has an agreement with the airport operator. Check-in is airline’s responsibility, security check is CISF’s… everything is connected,” an industry insider told TOI.
AERA will hold a stakeholders’ meeting next week. Comments on the proposal are open until September 24, 2025, TOI reported.
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