AERA Proposes Linking Airport Service Quality to Passenger Fees
Airports Economic Regulatory Authority (AERA) has proposed a new system that links airport operator performance to the user development fee (UDF) paid by passengers. Under the plan, operators could face a reduction in UDF if service standards are not met, while exceeding targets could lead to rewards.
The proposal addresses concerns over passenger experience issues, including delays in baggage delivery, long queues at check-in and security, and poor cleanliness. AERA’s consultation paper outlines a framework of performance standards covering service quality, continuity, and reliability at major airports.
The standards would establish benchmarks for maximum wait times at key touchpoints, including terminal entry, check-in, security, immigration, and baggage claim. They also cover cleanliness, the availability of basic facilities, and the adoption of digital solutions, such as Digi Yatra and e-gates.
According to AERA, airports often operate under limited competition, leaving passengers with few alternatives. The new framework aims to create a uniform, enforceable system across major airports, with third-party audits to monitor compliance.
Airports will be categorised by size, with different standards for those handling fewer than 60 lakh passengers annually and those handling more than 60 lakh passengers annually, reflecting differences in infrastructure and operations.
Stakeholder consultations on the proposal are scheduled for next week, with comments open until September 24, 2025.
Leave a comment