The Airports Economic Regulatory Authority of India (AERA) has floated a new plan that directly ties the User Development Fee (UDF) collected from flyers to the quality of service at major airports in India. In simple terms, airports will be rewarded for maintaining high standards, but the opposite might lead to penalties
Flying through India’s busiest airports could soon feel a little less frustrating. From quicker baggage delivery to cleaner washrooms and shorter queues at check-in or security, airports may soon be judged, and even financially rewarded or penalised, on how well they serve passengers.
The Airports Economic Regulatory Authority of India (AERA) has floated a new plan that directly ties passenger service quality to the User Development Fee (UDF) collected from flyers. In simple terms: if airports slack off, they risk losing money. But if they maintain consistently high standards, they could earn incentives.
The draft consultation paper, issued last month, sets the stage for uniform performance benchmarks at all major airports handling more than 35 lakh passengers annually. And for travellers, it signals that their flying experience might finally get the attention it deserves.
Here’s what changes it could bring
UDF will now be linked to services
The regulator points out that airports function as natural monopolies, so passengers don’t get to pick and choose, and they have to use the airport that serves their city. With that in mind, AERA says user charges should not only reflect infrastructure costs but also the quality of services passengers receive.
To fix this, the authority has suggested a common set of performance standards across major airports. These include everything from waiting times at check-in, security, and immigration counters to the cleanliness of washrooms, the speed of baggage delivery, and the availability of essentials like trolleys, wheelchairs, and proper signage.
“These standards are instrumental in safeguarding passenger interests, enhancing accountability, and promoting continuous improvement across airport operations,” AERA said.
If an airport falls short of these benchmarks, its User Development Fee (UDF) will be cut. On the flip side, airports that consistently exceed expectations could earn incentives, nudging operators to keep improving.
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Passenger experience will matter too
Currently, performance monitoring is largely left to airport operators themselves, which has raised questions about its effectiveness. To address this, AERA has proposed independent, third-party audits.
These audits would combine tech-based monitoring, like automated queue tracking, immigration e-gates, and biometric entry through Digi Yatra, with physical checks to ensure accuracy.
Importantly, passenger feedback will also play a role. Structured surveys will record travellers’ experiences with cleanliness, comfort, and ease of navigation. Together, this mix of hard data and personal feedback will decide whether an airport gets penalised or rewarded.
The audits will cover all major hubs, including those in metros, public-private partnership airports, facilities run by AAI, and even upcoming projects like Navi Mumbai and Noida.
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Preparing airports for the future
AERA’s paper also emphasises that India’s airports are rapidly modernising, with new technologies like self-baggage drop counters, e-gates, and facial recognition for boarding. But the regulator stresses that these upgrades must lead to tangible improvements for passengers, not just fancier terminals.
The proposed framework is designed to be “future-ready” and flexible, with 32 objective criteria and 18 subjective ones forming the basis of assessment. Over time, AERA aims to move towards real-time, fully automated monitoring for greater transparency.
The Ministry of Civil Aviation has already directed AERA to seek feedback from the public. Consultations with stakeholders are set for September 9, while written submissions will remain open until September 24. Once the framework is finalised, binding rules under the AERA Act will make it a legal obligation for airports to meet these service standards.
“Where infrastructure is funded through regulated tariffs, corresponding obligations must be placed on airports to deliver commensurate levels of service,” the paper states.
With input from agencies
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