The American airline industry has been in turmoil over the past few years, due to the decline of the American economy. But one can not help but wonder, who all is benefiting from this? Does the American airline industry show a direct correlation to that of other country’s industries?
Anytime one loses, another wins, or is more than better suited for the advantage. India, for instance, has begun to implement something that American airline industry has had for years. The establishing of the economic regulatory authority for airports and airlines. An economic regulatory authority is a governmental agency that regulates businesses in the public interest.
Titled the “Airports Economic Regulatory Authority of India Act 2008,” this act was first written in December of 2008 but was signed into law in May of 2009. The act establishes an independent body to regulate tariffs and monitor the performance of airports.
To many, this may sound common or mundane, but to a country that did not have these regulations prior to having them now is of great significance.
This new regulatory authority will attempt to remove all the anomalies that occurred during the “Airports Authority of India,” the prequel to the “Airports Economic Regulatory Authority of India Act 2008.” This reign as the service provider and regulator of domestic and international airports in India is the framework that the new regulatory authority hopes to correct.
One of the major problems with the old regulatory authority was that the charges for services did not match the quality of services provided in most cases. And without the intervention of an independent regulator, much like that of the American airline industry, India lacked the necessary environment
for the development of an airport infrastructure that could compete on a global standard.
The Airports Economic Regulatory Authority of India Act 2008 will be directly responsible for the regulating of tariffs at major airports; determining such fees as those for development and other passenger services fees, and monitoring performance standards relating to the quality of services at major airports.
It may be too soon to tell the effects of the Airports Economic Regulatory Authority of India Act 2008, but one thing is for sure, that this government control will overall better the country in the long run.