Indian Bureaucracy News, New Delhi, September 29, 2025 | With more Indians taking to the skies, the country’s airport sector is expanding rapidly. In this context, the Airports Economic Regulatory Authority of India (AERA) has issued a draft consultation paper proposing uniform service quality standards for airports, linking them directly to airport tariffs and fees. If implemented, the framework would monitor airport performance monthly, adjusting user development fees (UDF) and other charges depending on whether airports meet agreed benchmarks. The framework sets out 32 objective indicators, including security check-in times, baggage delivery speed, seating availability, and baggage trolleys, alongside 18 qualitative measures such as cleanliness, terminal ambience, and passenger assistance, all critical to consumer satisfaction touch points.
Performance standards will be linked to airport tariffs through a balanced framework that incorporates both rebates for non-compliance and incentives for exceeding benchmarks, the draft notes. This move marks a departure from the earlier practice in which private airports, which now handle the bulk of India’s air traffic, were not penalised for service lapses.
Stakeholder response
The draft framework has drawn objections from Airport Authority of India (AAI), which manages over 100 airports, and private operators at Delhi, Mumbai, Bengaluru, Hyderabad, and the upcoming Noida International Airport. AAI officials said uniform benchmarks are impractical across a diverse network, citing issues such as 24-hour complaint uploads, strict baggage timelines, aerobridge allocation, and Wi-Fi at smaller airports, and suggested infrastructure-based rather than time-bound standards.
Private operators flagged the penalty-incentive ratio—penalties of up to 5% of UDF versus incentives capped at 1.25%—as unbalanced. They also cautioned that peak-hour or festival-based metrics could distort performance and drive unnecessary capital expenditure, and requested phased implementation over 2–3 years along with a moratorium for new airports.
At a meeting on September 10, 2025, attended by airlines, operators, the Directorate General of Civil Aviation (DGCA), the Central Industrial Security Force (CISF), and the Quality Council of India, AERA Chairperson S K G Rahate said the framework aims to ensure continuous improvement of airport facilities, noting that much of airport development is funded through the UDF collected from passengers. Rahate added that some operator suggestions, such as phased implementation or moratoriums for new airports, could be considered, but emphasised that accountability remains essential, even when multiple agencies are involved.
Sector context
India’s civil aviation sector has been expanding at an unprecedented pace. Airlines have placed record aircraft orders—Air India’s Airbus and Boeing orders totaling nearly 500 aircraft, and IndiGo’s 500 Airbus A320 family jets—while new routes and regional connectivity programmes are increasing passenger volumes. Private airport operators such as Adani Airports, GMR Airports, and BIAL, along with upcoming projects like Noida International Airport, dominate traffic flows, while AAI continues to manage airports in Chennai, Kolkata, and smaller cities.
Civil Aviation Minister Ram Mohan Naidu recently noted the strategic importance of the sector – To achieve the target of 2047 Viksit Bharat, aviation is a very important sector. We are seeing that the biggest growth sector in the country is civil aviation… Our aim is to build 350 airports by 2047. Service quality remains central to this expansion, ensuring seamless travel across regional, domestic, and international routes, including emerging technologies such as eVTOL aircraft and seaplane services.
The timing of the consultation paper is notable. A recent parliamentary panel highlighted deficiencies in AERA’s regulatory role, citing inconsistent methodologies, delays, and limited monitoring of airport services despite substantial UDF collections. The panel noted persistent congestion, inadequate facilities, and long queues, and urged the regulator to assert its role more effectively.
Next step
Final submissions from operators, private airports, and other stakeholders will determine how the draft framework is refined before enforcement. The exercise marks a significant step in linking service quality to tariffs, with the potential to set measurable standards across India’s rapidly growing airport network.