Major Indian airports may soon face financial penalties for failing to meet service standards, including long queues at check-in and security, delays in baggage delivery, and unclean restrooms. The Airports Economic Regulatory Authority (AERA) has proposed a system to link airport performance to passenger fees, holding airports accountable for service lapses.

The AERA's proposal aims to establish uniform performance standards across all major Indian airports, covering maximum wait times at terminal entry, check-in, security, and immigration, as well as the timeliness of baggage retrieval, cleanliness, and the availability of basic facilities. The use of technology like Digi Yatra and immigration e-gates will also be monitored.

Under the proposed system, airports handling more than 3.5 million passengers annually would be assessed. Airports that exceed performance standards would be rewarded, while those failing to meet them would face penalties in the form of a reduction in the user development fee (UDF) charged to passengers.

AERA's initiative is a response to the limited choices passengers have regarding airports, where airport services are considered a "natural monopoly". The regulator aims to ensure efficient and transparent service delivery that meets operational and user expectations. AERA believes that establishing a structured and enforceable framework of service quality standards is crucial for safeguarding passenger interests, enhancing accountability, and promoting continuous improvement in airport operations.

To ensure compliance, a third-party agency would conduct audits at airports, including those run by private operators and the Airports Authority of India (AAI). Airports handling over 6 million passengers annually may be categorized separately due to differences in infrastructure and operational complexity.

This "carrot and stick" approach aims to incentivize airports to improve their services and provide a smoother travel experience for passengers. The proposal comes amid ongoing discussions about passenger rights and compensation rules. By linking financial incentives to performance, AERA seeks to promote a culture of continuous improvement and ensure that airports prioritize passenger satisfaction.