The Big Picture - AERA (Amendment) Bill, 2019

[@scorhigh7752]

AERA was passed in 2008, for transparent rule and which considers the interest of the people. Need: 1) AERA does not have the resources to manage more than 10% increase in passenger traffic. 2) Managing tariff as stipulated by the Ministry of Civil Aviation would be difficult. 3) The target for the economy is 5 trillion by 2025 and all the sectors need to contribute to this. 4) AERA is an independent regulator and the government wants a robust kind of regulation. 5) AERA runs airports and is also responsible for those airports. 6) In some cases, airports are being awarded on pre-determined tariffs and who the developer would be. These are on PPP models. This was the contradiction not seen in the act. As here we had to stick with the pre-determined tariffs. 7) Strict regulations because of which the number of operators are incurring heavy loses. 8) There is a monopoly. Features: 1) So the limited purpose of this amendment is to substitute the figure 1.5 million which defined a major airport, which reflected 1.3 per cent of the passenger traffic at that point of time, by the figure 3.5 million which accurately reflects the state of traffic today but it would maintain proportionality 2) The motive is to give a boost to the aeronautical industry. 3) The government wants to construct a large number of airports. 4) Concessions will be provided so that the aviation industry does not get burdened by the exorbitant charges of the exorbitant charges. 5) Rationalizing the tariff charges. 6) Safety and regulation are of utmost importance for the passengers. 7) The consumer is at the centre of this. What will change with this Bill: 1) Instead of 31 airports within the jurisdiction of AERA will get reduced to 16. 2) Smaller airports under UDAN scheme and those which have been brought under the private players will have huge passenger traffic and with this 35 lakh threshold government has taken to these airports from the purview of AERA. Criticism: 1) It will reduce the authority of AERA. Way Forward: 1) Strengthen AERA to deal with the increasing workload like the Central Electricity Regulatory Commission (CERC) has evolved. 2) Different kinds of regulatory or working environments for airports that are under the jurisdiction of the Airports Authority of India (AAI) and those that are under AERA. 3) Players in the field should be regulated by one regulator. 4) As in the case of TRAI, IRAI and others, AERA should also take customer reviews on the quality of service being provided. 5) Bill should be referred to the Parliamentary Standing Committee for technical guidance. 6) The regulator should work towards maintaining the safety and interest of the passengers. 7) Make India the international hub of the different airlines which will benefit the Indian Economy.

[@shashiketan]

*58. AERA Amendment Bill, 2019* Objective of creating AERA , 2008 (Airport Economic Regulatory Authority of India) - to create level playing field & healthy competition among major airports (Government owned, Private or PPP) - encourage investment in airport facilities. - Regulate tariffs of aeronautical services. - Protection of interests of consumers. AERA Amendment Bill, 2019: - The act defines major airport as a civilian airport with annual passenger traffic of 15 lakhs. The amendment increases this threshold to 35 lakh. proportionality remains same as compared to increasing traffic ~ 1.3% - AERA will not determine the Tariffs or tariff structure where the amount was a part of bid document. Intent of the Bill: - AERA was criticised for employing a model that has led to high airport charges, comprising up to 15% of the airline’s cost of operations . - Predetermined Tariff: Govt. can fix the tariff and then allow for bidding - price control. - Shifting the burden from regulator to Govt. - Airports being privatised: Tariff structure being made a part of bidding in privatization. Impact of the Bill: - Less airports will be covered by AERA: Reduced from 31 to 16. Rest of them will be covered by AAI. - It may give a boost to Airline Industry. Criticism: - regulator's Jurisdiction being reduced & handing over to private entities. - Ultimate burden may fall on consumers. Way Forward: - To maintain the cost & quality of services we need an independent regulator. - Strengthen the regulator to handle the increasing capacity rather than diluting it. - Reduction in Crude oil prices & reduction in ATV by states would help the aviation sector. - Provide facilities for International airlines to choose India as transit hub between US , Europe & Asia strengthening our economy & creating jobs. The Aviation sector is growing @ 10% yearly. It has a huge potential to be a catalyst in India's growth story. While the government's direction is in corporatisation of airports & changing the regulatory structure it should do by keeping in mind the safety & cost for high quality services to consumers.

[@shashiketan]

Anyone reading this, Please let me know if the summaries are helpful in any way for writing MAINS 2019 or for subsequent years. Thanks!

[@pujitha1780]

@@shashiketan Yes, they definitely are helpful. Thank you.#gratitude

[@apoorv1705]

@@shashiketan bhai.. God Level altruism

[@dimple2108]

Yes i always refer to your comment before watching the video so that i can have a idea what the matter is , your summary is very helpful please continue it👍

[@abhishekrai2723]

hey how are u numbering them? can't find 60 and many numbers. any logical way?

[@pandit-jee-bihar]

Please bring in people on the panel who are specialists not repeated generalists. The insights from someone who has worked extensively in the field is always good to know.

[@pandit-jee-bihar]

The increase in cap combined with a consistent double digit growth in the domestic aviation sector is a sure sign of growth and bright future of aviation in India.

[@AmitKumartakecharge]

Rapid growth of aviation sector is desirable. However doing away with regulator is not the way to go. Interest of service providers and passengers are to be safeguarded. Arguing that workload on regulator is solved by decreasing its scope is not bought well.

[@aryanbihar]

Thanks RSTV

[@pandit-jee-bihar]

Government also should make it cheaper to fly for the citizens which will set the precedent for increased growth. Common citizens should feel confident enough that there is also a place for him in this journey of growth and travelling by air is another alternative for him and not a compulsion to embrace in certain situations. UDAN scheme was great but a change in policy is needed to bring down the cost of flying.

[@sanjanavenkateswaran5485]

If more airports are now coming under the purview of government, won’t it go against government’s motive of minimum government maximum governance!

[@RaviSingh-tf6bn]

Hi....di......can...u help ...me to in improving.... My.... English communication skills.. through.. phone call

[@Ask35720]

@@RaviSingh-tf6bn I can.. contact me , if at all that's your true intention 😏

[@mukulmishra9261]

Nope, they will be corporatised- pvt sector would step in ultimately. Hence,this will become a source of revenue for the GOI.

[@AmitKumartakecharge]

To be honest, Air CMDR. didn't add any valuable points to the discussion. It was disheartening.

[@void_kshitij]

Did Frank try to change his accent ? its evident , but why ?

[@SamyakJagtap]

Adani k liye

[@aspirant8996]

CMDR Siwach is looking like a drunkard.

[@Ask35720]

Actually he is an aged guy so you must show some respect.

[@vinaytharendragowda1144]

Your dp and your comment donot match at all . .