No more airport IOUs. Regulator wants flyers to pay only when projects are ready
New Delhi, July 13 -- India's airport tariff regulator wants to end a long-standing practice that allows private airports to charge passengers for infrastructure years before it is ready.
The Airports Economic Regulatory Authority of India (Aera) has proposed that airports recover the cost of major expansion projects only after those assets are completed and operational, instead of factoring them into passenger charges at the start of a tariff cycle. If adopted, the move would shift the burden of funding airport expansion from passengers to airport operators until projects are ready.
Last month, Aera began consultations with airport operators and airlines on levying user development fees (UDF) only after projects at existing airports ar...
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