Cabinet approves setting up of aviation regulator

New Delhi, May 3 (UNI) The union cabinet headed by prime minister Manmohan Singh today approved passing of the long-awaited Airports Economic Regulatory Authority Bill 2007.

The bill yet to be passed by parliament will pave the way for setting up an Airport Economic Regulatory Authority (AERA) will fix, review and approve tariff structure for aeronautical services.

It will also monitor pre-set performance standards at airports across the country.

The AERA will examine competition in airports, particularly in view of private companies entering the arena. The need for a regulator for the aviation sector has been necessitated in view of the rapid growth the airline industry is witnessing.

The increased passenger and cargo traffic has posed new challenges in the area providing adequate infrastructure at airports.

The challengers include expansion of capacity at existing airports, upgradation and modernisation of metro and non-metro airports, development of new greenfield airports, induction of modern technology for efficient handling of aircraft, passengers and cargo at airports, upgradation of communication and navigation systems (CNSs) and air traffic management (ATM).

The number of domestic air passengers jumped 45 per cent in 2006-07 to 35 million while the number of international passengers moved up over 15 per cent to 25 million.

UNI