Supreme Court to rule on AERA’s powers, may lead to costlier airport services

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Subscribe to enjoy similar stories. New Delhi: The Supreme Court of India is set to rule on the powers of the Airports Economic Regulatory Authority (AERA) to regulate tariffs for non-aeronautical services, a decision that could affect the charges that passengers pay for airport facilities and flying.

The court will decide whether the AERA can regulate tariffs for services such as ground-handling and cargo operations at airports including New Delhi and Mumbai, the busiest in India. A three-judge bench of the Supreme Court comprising Chief Justice of India DY Chandrachud, Justice JB Pardiwala and Justice Manoj Mishra reserved its judgment on September 24.

The bench will deliver separate judgments on the issue of maintainability before addressing the main questions of law raised. The AERA had appealed against a January 2023 judgment by the Telecom Disputes Settlement and Appellate Tribunal (TDSAT), which ruled that non-aeronautical services fall outside the AERA’s jurisdiction, regardless of whether they are provided by the airport operator or a contractor.

The ruling came in response to a plea by airport operators, including Delhi International Airport Ltd (DIAL) and Mumbai International Airport Ltd (MIAL). The AERA told the Supreme Court that under the Airports Economic Regulatory Authority of India Act, 2008, its role is critical to ensure fair competition and protect public interest, particularly regarding passenger tariffs.

During the proceedings, AERA argued, “At least the people who created us certainly call us regulators. Creating a level playing field, fostering healthy competition, encouraging investments, and regulating tariffs… for whom? For each one of the passengers—a section representing the public—are we