'An immediate challenge to AERA is that it will have to ensure that the airport charges are calibrated so as not to unnecessarily burden the airlines and passengers and at the same time are remunerative enough for airport operators,' an official statement announcing Bhave's appointment said.

The regulator is likely to start work in the next few months.

The regulatory authority, set up in 2008, will also redress issues like fixation of development fees and passengers service fees.