The newly formed tariff regulator Airports Economic Regulatory Authority of India (Aera) is of the opinion that single-till model is the most appropriate way to decide charges in India. This could potentially change the way airport charges are levied in India and benefit airlines as well as passengers. The choice between single-till and dual-till model is critical as it will decide how much passengers have to pay. However, Private airport operators continue to battle for the double-till model.

In the single-till model, followed by UK airports such as Heathrow and Gatwick, all principal airport activities including aeronautical and commercial (or retail) are taken into account to determine the level of airport charges. In contrast, only aeronautical or flying-related activities are considered under the dual-till principle. Airlines prefer the single-till model as airport charges are likely to be lower under it. However, private airport operators and their investors are keen to have charges decided on the basis of a double-till model because this will help them increase revenue. Currently, most Indian airports do not earn significant commercial income.

Aera has tentatively taken a stand that single-till is suitable in the Indian context. It has sought comments and views from the industry stakeholders. It has already circulated a draft consultation paper on the issue among airlines and airport operators. The last date to submit comments and suggestions is 19 March. The choice of pricing model is critical as it will decide how much passengers will have to pay. Currently, passengers pay user development and airport development fees—a levy for future facilities being built at airports.