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Picture Courtesy: The Hindu

Context:

Parliament's Public Accounts Committee (PAC) has directed the Airport Economic Regulatory Authority (AERA) to provide a detailed reply within 15 days on the criteria used to calculate the User Development Fee (UDF).

Details

The Public Accounts Committee (PAC) has raised concerns about the "arbitrary" User Development Fee (UDF) charged by several airport operators in India.

The PAC directed the Airport Economic Regulatory Authority (AERA) to provide detailed written replies within 15 days on how the UDF is calculated, the total revenue collected, and the amenities or infrastructure improvements made using this revenue.

The committee also criticized the Directorate General of Civil Aviation (DGCA) for its laxity in regulating tariffs and monitoring airfares, especially during festivals and holidays.

About the Directorate General of Civil Aviation (DGCA)

It was established in 1946, and became a statutory body under the Aircraft (Amendment) Act, 2020.

It is the regulatory body that governs civil aviation. It is responsible for air safety, airworthiness, and the regulation of air transport services. 

It also coordinates with the International Civil Aviation Organization (ICAO). 

The DGCA's headquarters are in New Delhi.

What does the DGCA do? 

• Regulates air transport services
• Enforces air safety, airworthiness, and civil air regulations
• Investigates incidents
• Licenses personnel
• Promotes safe and efficient air transportation
• Coordinates with the ICAO
• Works to reduce aircraft noise and emissions

About the Airport Economic Regulatory Authority (AERA)

It is a statutory body established under the Airports Economic Regulatory Authority of India Act 2008 to regulate the economic aspects of major airports.

According to the AERA Act of 2008, an airport is designated as a "major airport" if it handles at least 15 lakh passengers annually. However, an amendment in 2019 raised the threshold to 35 lakh passengers annually for an airport to be classified as major.

It functions under the Ministry of Civil Aviation.

It specifies fees like the User Development Fee (UDF) and passenger service charges.

Key functions of AERA

• It sets the tariffs for services at major airports, taking into account the capital expenditure incurred by airport operators and the need for timely investment in upgrades.
• It monitors the performance standards of airports to ensure efficient operations and service quality.
• It analyzes the cost of providing aeronautical services at airports to determine fair pricing.
• It can resolve disputes between airlines and airport operators regarding tariffs and charges. 

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Source: 

THE HINDU