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Navigating the AERA Landscape

15 Oct 2025

Identification of Promoters

The Airports Economic Regulatory Authority Act 2008 (AERA Act) has marked a pivotal shift in the aviation regulatory framework in India. Our Partner, Milanka Chaudhury, highlights some of the regulatory challenges since the implementation of the AERA Act.

Milanka explains that the Supreme Court’s ruling prioritising airport concession agreements over the AERA Act brings clarity for pre-AERA airports in the classification of cargo and ground handling services as aeronautical or non-aeronautical for airport tariff determination in India. For airports established after the AERA Act, treating these services as aeronautical could limit operators’ pricing control and affect profitability.

Another issue Milanka highlights is how AERA’s normative approach to the regulation of airport capital expenditure conflicts with both the AERA Act and the concession agreements, leading to legal challenges. Finally, he discusses the debate over considering revenue share, paid to Airports Authority of India, in tariff determination for tax and cross-subsidy.

Despite these challenges, the AERA continues to play a crucial role in supporting airport profitability in India and long-term airport infrastructure investment in India.

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