AERA (Amendment) Bill, 2019 – Free PDF Download

Q) Which among the following are the major airports of India?

1.Lucknow
2.Guwahati
3.Bhopal
4.Indore
5.Bagdogra

A)- 1, 2, 4

B)- 1,2,3,4

C)- 1,2,4,5

D)- 1,3,4

WHAT ARE THE AMENDMENTS?

• Definition of major airports:
• The Act defines a major airport as one with annual passenger traffic over 15 lakh, or any other airports as notified by the central government. The Bill increases the threshold of annual passenger traffic for major airports to over 35 lakh.
• This will reduce the number of major airports from present 28 to 16.
• Airports that cease to be identified as major airport will come under the jurisdiction of the Ministry of Civil Aviation and GOI.
• Therefore, for all these airports, the tariff charges will be decided by Ministry of civil aviation.
• The Bill adds that AERA will not determine: (i) the tariff, (ii) tariff structures, or (iii) the development fees, in certain cases.
•  These cases include those where such tariff amounts were a part of the bid document on the basis of which the airport operations were awarded.
• AERA will be consulted by the concessioning authority before incorporating such tariffs in the bid document, and such tariffs must be notified.
•  The AERA bill seeks to reduce the burden hanging on AERA as there has been a phenomenal increase in the passenger traffic which has increased the workload on AERA.
• With its limited resources, the AERA is finding it difficult to monitor the quality of services delivered at the major airports and also determine the various tariffs.

PROBLEMS IN AVIATION INDUSTRY

• Increase in fuel prices- the jet fuel accounts for 45 percent of an airline’s cost of operation.
• Higher airport cost- Airport Charges levied by Airport Authority of India are higher. These charges payable at the International airports are higher than those payable at the airports designated as Domestic airports.
• Government intervention- Several aviation experts have pointed out that India government should follows aviation industry free from policy hurdles like regulating airfares and slash taxes, including jet fuel.
• Severe competition- Established Airlines are threatened by low cost carriers, which are eating up their market share.

INITIATIVE IN AVIATION INDUSTRY

• NATIONAL CIVIL AVIATION POLICY, 2016-
• To enable 30 crores domestic ticketing by 2022 and 50 crore by 2027.
• Cargo volumes should increase to 10 million tones by 2027.
• Scrapping the 5/20 rule.
• UDAN-UDE DESH KA AAM NAGRIK-
• Connectivity to un-served and under-served airports.
• To make flying a reality for the small town common man.
• The fare of one hour journey has been capped at Rs. 2500.
• INFRASTRUCTURE INITIATIVES-
• Upgrading of existing airports through project DISHA (Driving Improvements in Service and Hospitality at Airports).
• Initiatives like WINGS-2017 and Air-SEWA.

Q) Which among the following are the major airports of India?

1. Lucknow
2. Guwahati
3. Bhopal
4. Indore
5. Bagdogra

A)- 1, 2, 4

B)- 1,2,3,4

C)- 1,2,4,5

D)- 1,3,4

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