
- The Airports Economic Regulatory Authority has proposed linking the fee paid by users to quality of service
- Deficiencies could lead to penalties, and exceeding targets could earn operators incentives
- It noted airports operate as natural monopolies - passengers have no choice but to use the designated airport
Airports across India may soon be rewarded based on how clean their washrooms are, how fast baggage arrives, and how long passengers wait at check-in, security or immigration. And, conversely, deficiencies could lead to penalties.
The Airports Economic Regulatory Authority of India (AERA) has proposed linking the User Development Fee (UDF) - collected from passengers - to the quality of service provided at major airports. In a draft consultation paper, issued last month, AERA outlines that poor performance could result in financial penalties, while consistently high service standards may bring incentives.
Linking Fees to Service
The regulator argues that since airports operate as natural monopolies - passengers have no choice but to use the designated airport for a city - it is essential to ensure that user charges reflect not just infrastructure costs, but also service delivery. AERA has therefore proposed a uniform set of performance standards covering areas such as waiting times at check-in, security and immigration counters, cleanliness of washrooms, efficiency of baggage handling, and availability of passenger amenities like trolleys, wheelchairs, and signage.
Under the proposed system, airports failing to meet benchmarks will face consequences in the form of a reduction in the UDF. Exceeding targets, on the other hand, could earn operators incentives, encouraging continuous improvement.
Independent Monitoring
To address concerns that the current monitoring is ineffective, AERA has recommended independent third-party audits instead of relying on airport operators to self-report performance. The audits will combine technology-driven monitoring, such as automated queue-time tracking and biometric entry through Digi Yatra, with manual checks to ensure reliability.
Passengers' perceptions will also be factored in through structured surveys, capturing experiences of cleanliness, comfort, and ease of navigation. Together, objective data and subjective feedback will determine whether airports are penalised or rewarded.
Future-Ready Framework
The consultation paper highlights India's push to integrate advanced technologies like self-baggage drop systems, immigration e-gates, and facial recognition-based boarding. These innovations, AERA says, must translate into real benefits for travellers, not just modern-looking terminals.
The framework is designed to be "future-ready" and adaptable, with 32 objective parameters and 18 subjective ones proposed for assessment. Over time, AERA plans to move towards fully automated, real-time monitoring to ensure greater transparency and accountability.
Protecting Passenger Rights
The Ministry of Civil Aviation has directed AERA to seek public feedback on the proposals, with stakeholder consultations scheduled for September 9 and written submissions open until September 24. Once finalised, the ministry will notify binding rules under the AERA Act, making service quality a legal obligation for airports.
"Where infrastructure is funded through regulated tariffs, corresponding obligations must be placed on airports to deliver commensurate levels of service," the paper notes.
This move comes in response to the rapid growth of air travel in India, the rising use of technology like Digi Yatra, and passengers' increasing expectations of reliable and hygienic airport facilities. If implemented, the new rules could significantly change how airports operate in India
Track Latest News Live on NDTV.com and get news updates from India and around the world