LLM Notes: Powers and Functions of Airports Authority of India

 Statutory Status and Establishment

Constitutional Authority

• The Airports Authority of India (AAI) was constituted by an Act of Parliament and came into existence on April 1, 1995, through the Airports Authority of India Act, 1994, by merging the erstwhile National Airports Authority and International Airports Authority of India. 

• AAI is a statutory body operating under the Ministry of Civil Aviation, Government of India, with headquarters located in New Delhi. 

• The Authority has legal jurisdiction over 137 airports, including 34 international airports, 10 customs airports, 81 domestic airports, and 23 civil enclaves at defense airfields. 

Airport Management Powers

Operational Authority

• AAI possesses comprehensive authority for managing airports, civil enclaves, and aeronautical communication stations efficiently as specified under Section 12 of the AAI Act. 

• The Authority is empowered to provide air traffic service and air transport service at any airport and civil enclaves throughout the country. 

• AAI has the mandate to regulate and control the plying of vehicles and the entry and exit of passengers and visitors in airports and civil enclaves, with due regard to the security and protocol functions of the Government of India. 

Passenger Facilities Management

• The Authority is empowered to establish and maintain hotels, restaurants, and restrooms at or near the airports to enhance passenger experience and convenience. 

• AAI can arrange for postal, money exchange, insurance, and telephone facilities for the use of passengers and other persons at airports and civil enclaves. 

• The organization has powers to provide transport facilities that are, in the opinion of the Authority, necessary for passengers traveling by air. 

Infrastructure Development Powers

Construction and Maintenance Authority

• AAI is authorized to plan, develop, construct, and maintain runways, taxiways, aprons, terminals, and ancillary buildings at airports and civil enclaves.

• The Authority possesses powers to establish warehouses and cargo complexes at airports for the storage or processing of goods. 

• AAI can construct residential buildings for its employees as part of its infrastructure development mandate. 

Technical Infrastructure Powers

• The Authority can plan, procure, install, and maintain navigational aids, communication equipment, beacons, and ground aids at airports and other locations as may be considered necessary for safe navigation and operation of aircraft. 

• AAI is empowered to establish and manage heliports and airstrips to expand air connectivity. 

• The organization is authorized to develop and implement Advanced Surface Movement Guidance and Control System (ASMGCS) to provide routing, guidance, and surveillance services to aircraft and vehicles on the ground. 

Air Traffic Management Powers

Air Navigation Services

• AAI provides Air Traffic Management (ATM) services over Indian Territory airspace and adjacent oceanic areas with ground installations at all airports and 25 other locations. 

• The Authority has the power to establish ATS routes, realign existing air routes in consultation with user airlines and international bodies such as IATA and ICAO. 

• AAI is authorized to establish control zones and control areas and make changes to existing control zones and areas for efficient air traffic management. 

Safety and Navigation Authority

• The Authority is empowered to provide air safety services and search and rescue facilities in coordination with other agencies. 

• AAI has the mandate to establish Danger/Prohibited and Restricted areas and changes to mentioned areas in coordination with concerned Government Agencies. 

• The organization is responsible for providing Aeronautical Information Service (AIS) as prescribed by ICAO to all domestic and international airlines and ATS of other countries. 

Commercial Powers

Revenue Generation Authority

• AAI has the power to generate traffic revenues through Route Navigation Facility Charges (RNFC) fees for providing CNS & ATC services, landing/parking fees, and passenger service fees. 

• The Authority can generate non-traffic revenues through concessions (rents from shops and restaurants), parking and airport access fees, car rental operations, lease of land, and advertising spaces.

• AAI is authorized to undertake any activity at airports and civil enclaves in its best commercial interests, including cargo handling and setting up joint ventures for discharging its functions. 

Leasing and Partnership Powers

• The Authority has powers to lease land to third parties for commercial development within the framework of the AAI Act, subject to certain limitations on non-aviation related commercial activities. 

• AAI can enter into operation and management contracts with state governments and public sector undertakings for operating and managing their airports. 

• The organization has the power to form one or more companies under the Companies Act to further the efficient discharge of the functions imposed on it by the AAI Act. 

Land Management Powers

Land Acquisition and Administration

• AAI has the authority to liaise with State Governments and take follow-up action for acquisition of land, get it registered in the name of AAI, and take possession of the land. 

• The Authority has powers to establish ownership documents of the land and keep records of all documentation. 

• AAI can formulate policies for land lease and implementation, monitor taxation matters of AAI property, and prepare by-laws for lease/license of land and construction, keeping in view the Master Plan of AAI Airports. 

Encroachment Management

• The Authority has powers for prevention, removal of encroachment, and settling of local disputes related to airport land. 

• AAI possesses the power to require payment of rent or damages in respect of airport premises as specified under the AAI Act. 

• The organization has eviction powers through designated officers to maintain control over its land holdings. 

Regulatory Powers

Compliance and Enforcement

• AAI sets standards and regulations necessary for aviation safety, security, facilitation, efficiency, and economic development of air transport. 

• The Authority has powers to monitor and control obstructions around airports to ensure compliance with Standards and Recommended Practices (SARPs) of ICAO. 

• AAI is authorized to monitor standards and procedures in the provision of Air Traffic Services and investigate Air Traffic Incidents in coordination with DGCA. 

Licensing and Certification

• The Authority has powers to issue licenses and permits related to airport operations and development. 

• AAI possesses the power to establish licensing requirements for various airport functions and ensure compliance with these requirements. 

• The organization can develop and enforce rules for airport operations in line with international standards. 

Environmental Management Powers

Sustainability Authority

• AAI has the authority to implement environmental protection measures and sustainability initiatives at airports across India. 

• The Authority has set a carbon-neutral target for scope 1 and scope 2 emissions of AAI airports by 2027 and is implementing best practices in carbon management. 

• AAI participates in the Airport Carbon Accreditation program launched by Airports Council International (ACI) to follow best practices in greenhouse gas emission reduction. 

Renewable Energy Implementation

• The Authority has powers to invest in renewable energy sources, with airports already meeting about 30% of their energy requirements through renewable sources. 

• AAI has installed approximately 40 MWp of solar power across its airports and aims to enhance solar capacity to 100 MWp by 2024. 

• The organization conducts periodical Energy Audits of AAI Airports and implements recommendations of energy auditors to optimize energy consumption. 

Training and Development Powers

Human Resource Development

• AAI has the authority to establish schools, institutions, or centers for the training of its officers and employees in areas connected with the purposes of the AAI Act. 

• The Authority possesses powers to establish training institutes and workshops for enhancing the skills of its workforce. 

• AAI can formulate training policies and develop comprehensive training plans to identify training needs, priorities, resources, and responsibilities for all groups engaged in employee training. 

Training Infrastructure Management

• The Authority operates specialized training centers including the Civil Aviation Training College (CATC) at Allahabad, NIAMAR at Delhi, and Fire Training Centres at various airports. 

• AAI has powers to design and conduct training programs of different durations (ranging from 1 week to 50 weeks) depending on course objectives and design. 

• The organization can accommodate additional training slots for non-AAI agencies, including requests from foreign countries. 

International Cooperation Powers

Global Partnership Authority

• AAI has the power to enter into memorandums of understanding (MoUs) with international aviation organizations to facilitate cooperation and knowledge exchange. 

• The Authority can collaborate with international civil aviation bodies like ICAO Regional Office Bangkok and Headquarters Montreal on matters relating to airspace management and air navigation services.

• AAI is empowered to develop and provide consultancy, construction, or management services, and undertake operations in India and abroad related to airports, air navigation services, ground aids, and safety services. 

Technology Development Partnerships

• The Authority can enter into agreements with public and private organizations for the joint development of indigenous systems for air traffic management. 

• AAI has powers to collaborate with foreign entities to explore smart aviation solutions and facilitate bilateral exchange of aviation expertise and technology. 

• The organization can participate in international initiatives and programs related to aviation safety, efficiency, and sustainability. 

Financial Powers

Budgetary Authority

• AAI has the power to charge fees, rent, and other charges for services provided at airports and for the use of airport facilities. 

• The Authority can levy development fees at airports for funding or financing the costs of upgrade, expansion, or development of airports. 

• AAI is empowered to invest surplus funds in short/long term investments, subject to provisions of Section 24(3) Chapter V of the Airports Authority of India Act, 1994, and Government Guidelines. 

• Borrowing and Expenditure Powers

• The Authority can borrow money from any source by issuing bonds/debentures or by way of overdraft or otherwise, subject to provisions of Section 27 of the AAI Act. 

• AAI has powers to establish limits with Scheduled Banks for fund-based facilities like short-term loans, overdraft, and cash credit. 

• The organization is authorized to open, operate, and close Current Accounts, Collection Accounts, and Disbursement Accounts with Scheduled Commercial Banks in the name of Airports Authority of India. 

Overview for Quick Understanding

The Airports Authority of India was established on April 1, 1995, under the Airports Authority of India Act, 1994. It's a statutory body that merged two previous authorities to create a single organization managing India's civil aviation infrastructure.

Key Legal Framework: Section 12 of the AAI Act, 1994 defines the core functions

Powers and Functions - Organized by Categories

Constitutional Powers

• Establishment: Created by Parliament through AAI Act, 1994

• Composition: Chairperson + Director General of Civil Aviation + 8-14 members appointed by Central Government

• Headquarters: New Delhi

• Jurisdiction: 125 airports including international, domestic, customs airports, and civil enclaves

Core Operational Functions

Function Category	Specific Powers	Legal Basis
Airport Management	Manage airports, civil enclaves, and aeronautical communication stations efficiently	Section 12(1)
Air Traffic Services	Provide air traffic service and air transport service at airports and civil enclaves	Section 12(2)
Infrastructure Development	Plan, develop, construct, maintain runways, taxiways, aprons, terminals	Section 12(3)(a)
Technical Assistance	Provide technical, financial assistance for establishing private airports	Section 12(3)(b)
Navigation Aids	Install and maintain navigational aids, communication equipment, beacons	Section 12(3)(c)
Safety Services	Provide air safety services and search & rescue facilities	Section 12(3)(d)

Commercial and Administrative Powers

Power Type	Specific Authority	Section Reference
Training	Establish schools, institutions, training centers for officers and employees	Section 12(3)(d)
Construction	Build residential buildings for employees	Section 12(3)(e)
Hospitality	Establish hotels, restaurants, restrooms at/near airports	Section 12(3)(f)
Cargo Operations	Establish warehouses and cargo complexes	Section 12(3)(g)
Passenger Services	Arrange postal, money exchange, insurance, telephone facilities	Section 12(3)(h)
Security	Make arrangements for watch and ward at airports	Section 12(3)(i)
Traffic Control	Regulate vehicles, entry/exit of passengers and visitors	Section 12(3)(j)

Busines s Development Powers

Commercial Function	Authority	Legal Provision
Consultancy Services	Provide consultancy, construction, management services in India and abroad	Section 12(3)(k)
Heliports	Establish and manage heliports and airstrips	Section 12(3)(l)
Transport Services	Provide necessary transport facilities for air passengers	Section 12(3)(m)
Corporate Formation	Form companies under Companies Act to discharge functions efficiently	Section 12(3)(n)
Commercial Activities	Undertake cargo handling, joint ventures for commercial interests	Section 12(3)(r)

Mind Map Structure for Memorization

AAI POWERS & FUNCTIONS
├── STATUTORY BASIS
│   ├── AAI Act 1994
│   ├── Section 12 (Main Functions)
│   └── Parliamentary Authority
│
├── CORE OPERATIONS
│   ├── Airport Management
│   ├── Air Traffic Services
│   ├── Safety & Security
│   └── Infrastructure Development
│
├── COMMERCIAL POWERS
│   ├── Revenue Generation
│   │   ├── Fees & Charges (Section 22)[1]
│   │   ├── Development Fees (Section 22A)[1]
│   │   └── Commercial Activities
│   ├── Business Development
│   │   ├── Consultancy Services
│   │   ├── Joint Ventures
│   │   └── Company Formation
│   └── Property Management
│       ├── Land Acquisition
│       ├── Construction
│       └── Leasing Powers
│
├── REGULATORY FUNCTIONS
│   ├── Standards Setting
│   ├── Compliance Monitoring
│   └── International Cooperation
│
└── SUPPORT SERVICES
    ├── Training & Development
    ├── Employee Facilities
    └── Passenger Services

Key Legal Principles for Exam

Statutory Interpretation Points

1. Section 12(4): AAI must have "due regard to development of air transport service and efficiency, economy and safety"

2. Section 12(5): AAI cannot disregard any law in force

3. Business Principles: Authority must act on business principles (Section 11)

Important Constitutional Aspects

• Disqualification Criteria (Section 4): Conviction for moral turpitude, insolvency, unsound mind, dismissal from government service

• Central Government Control: Power to issue directions, make rules and regulations

Exam Memory Tips

Acronyms for Functions

"AIMS CATCH"

• Airport Management

• Infrastructure Development

• Money Exchange & Services

• Safety & Security

• Cargo & Commercial

• Air Traffic Services

• Training & Development

• Consultancy Services

• Heliports & Transport

Quick Reference Numbers

• Established: April 1, 1995

• Total Airports: 125

• Key Section: Section 12 (Functions)

• Members: 8-14 + Chairperson + DG Civil Aviation

Critical Legal Points for Essays

1. Unified Authority: Merger concept - single body for efficiency

2. Statutory vs. Administrative: Parliamentary Act gives it legal authority

3. Public-Private Balance: Can form companies and enter joint ventures

4. Safety Priority: Must ensure safe and efficient aircraft operations

5. Commercial Viability: Must act on business principles while serving public interest

This structure provides both conceptual understanding and practical memorization tools essential for Masters of Law examinations in India.

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