The Airports Authority of India Act, 1994
📘 Overview: Airports Authority of India Act, 1994
The Airports Authority of India Act, 1994 is the legislation that governs the Airports Authority of India (AAI)—the statutory body responsible for creating, upgrading, maintaining, and managing civil aviation infrastructure in India.
🎯 Objectives of the Act
To constitute the Airports Authority of India (AAI) as a statutory body.
To enable AAI to develop, manage, and operate airports and air traffic services in India.
To provide a framework for the efficient management of airports, enhancing safety, capacity, and quality.
To regulate tariffs and charges related to airports and aviation services.
To promote the development of airport infrastructure in a coordinated manner.
🧱 Key Provisions of the Act
1. Constitution of the Airports Authority of India (AAI)
The Act establishes the AAI as a corporate body.
AAI is responsible for managing airports and providing Air Traffic Management (ATM) services.
It replaces the earlier arrangement where airport management was fragmented between different entities.
2. Functions of the AAI
Develop, upgrade, maintain, and operate airports.
Provide air traffic services including air navigation and communication services.
Regulate tariffs and user charges at airports.
Assist in planning and promoting civil aviation infrastructure.
Ensure compliance with safety, security, and environmental standards.
3. Board of Directors
AAI is managed by a Board of Directors, including:
Chairman
Managing Director
Other directors nominated by the Central Government
The board formulates policies and oversees operations.
4. Financial Provisions
AAI’s funding comes from:
Revenue from airport operations, landing fees, passenger fees, and other charges.
Government grants and loans.
The Act allows AAI to borrow money and invest funds.
5. Regulatory Powers
The Act empowers AAI to set charges for services rendered at airports.
The government may also notify rules regarding tariffs and user fees.
6. Safety and Security
AAI is responsible for ensuring compliance with safety and security standards at airports.
Coordination with other agencies like DGCA (Directorate General of Civil Aviation) and BCAS (Bureau of Civil Aviation Security) is mandated.
⚖️ Importance of the Airports Authority of India Act
The Act provides a unified framework for managing airport infrastructure in India.
It helps in streamlining airport operations and improving efficiency.
The AAI under the Act plays a key role in modernizing airports and facilitating the growth of civil aviation.
It supports the government’s vision of expanding connectivity and boosting tourism and trade.
It ensures regulatory oversight for charges, promoting fairness and transparency.
📌 Summary Table
| Aspect | Details |
|---|---|
| Enacted | 1994 |
| Purpose | Constitute and empower Airports Authority of India (AAI) |
| Type | Statutory body |
| Functions | Manage airports, provide air traffic services, set tariffs |
| Governing Body | Board of Directors including Chairman, MD |
| Funding | User charges, government grants, loans |
| Regulatory Powers | Fixation of tariffs and user charges |
| Role in Aviation Sector | Infrastructure development, safety, modernization |
Additional Notes
The AAI manages more than 120 airports across India, including major international and domestic airports.
It also handles Air Traffic Control (ATC) for Indian airspace, ensuring safe and efficient air navigation.
The Act allows flexibility for AAI to enter into joint ventures, public-private partnerships, and to invest in airport modernization.Do write to us if you need any further assistance.
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