Government owned 85 percent Airports are facing losses in India

Even though the increasing number of passenger airlines is making new records every month in the country, the Govt. owned airports are not getting much benefit from it. According to data received from the Ministry of Civil Aviation, 92 out of 107 active airports owned & operated by the Airports Authority of India are in the deficit. Only 15 airports which are situated in the major cities are in profits. It is a matter of relief for the government that the profits earned by these 15 airports are more than the total losses of the remaining 92 airports.

There are a total of 126 airports in the country. Out of these, three airports in Delhi, Mumbai, and Hyderabad are operated under private-public partnership. The Airports Authority of India operates the remaining 123 airports. Out of these, 15 airports including Chennai, Kolkata, Ahmedabad, and Lucknow are among those who are making profits. The remaining 92 airports in Indore, Bhopal, Mangaluru, and Raipur are running in very deficit. The highest profits are from Chennai Airport, which made profits of Rs 455.4 crore in the year 2017-18.

However, this profit is less than 25 percent from the last year’s profit of Rs 605.2 crore. Kolkata airport is in the second rank in terms of earning profits. This airport has earned Rs 411.1 crore in the last financial year. The Mangalore airport is facing the biggest loss with Rs.74 crores in the last financial year. The Safdarjung airport of Delhi is in second place with a loss of Rs.71 crores.

Emphasis on increasing passenger numbers

The current Government which came into power in the year 2014, has given special emphasis on increasing the number of passengers. Among these efforts, the country’s most promising was UDAN (Ude Desh ka Aam Nagrik) scheme. This has led to the launch of airlines in smaller cities. Due to these efforts of the government, the numbers of domestic airlines increased from 7 crore (in the year 2014-15) to 11.7 crore in 2017-18. The central government has recently approved the proposal of leasing out of six airports including Ahmedabad, Jaipur, Lucknow, Guwahati, Thiruvananthapuram, and Mangaluru to operate under PPP mode.

Source: Urban Transport News

AAI to pick 51% stake in Dholera International Airport

Construction of the much-awaited Dholera International Airport (DIAC) is likely to begin early next year with the Airports Authority of India (AAI) approving a decision earlier this month to take a 51% stake in the project. AAI will be inducted on the board of DIAC at the latter’s upcoming board meeting in December, Jai Prakash Shivahare, MD, Dholera Industrial City Development, told FE. While AAI will hold 51%, the Gujarat government will hold 33% and the central government, through the Delhi Mumbai Industrial Corridor Development Corporation (DMICDC), will hold a 16% stake in DIAC.
Construction of the first phase of the airport is expected to cost roughly Rs 2,000 crore.

The airport will have a runway of 3,000 metres, a terminal building and other peripheral facilities, Shivahare said, adding that the construction is expected to begin sometime in Q1FY20. The first phase will be built to cater to a capacity of 1.1-5.5 million passengers annually which DIAC expects to reach in 2029. Shivahare said depending on the growth in passenger traffic, DIAC will build a second runway of 4,000 metres in the second phase, designed to cater to 6.5-12.5 million passengers annually, till 2035. The third phase of expansion will accommodate 13.8-25.8 million passengers annually, designed to last till 2044.
AAI is yet to decide on whether construction of the airport will be bid out via a PPP model or for a cash contract.
Shivahare added there is also a plan to build an aircraft maintenance, repair and overhaul (MRO) facility, given the lack of such facilities in the country. “Obviously, the first requirement is to have a functional airport for passenger movement. We will look at the setting up the MRO shortly thereafter,” Shivahare said.

Source: Financial Express

India: Six airports to be developed

‘In principle’ nod by Cabinet to PPP projects for ‘world-class’ non-metro airports

The Union Cabinet on Thursday gave an “in principle” approval for operating, managing and developing six non-metro airports — Ahmedabad, Jaipur, Lucknow, Guwahati, Thiruvananthapuram and Mangaluru — under a Public Private Partnership (PPP).

The Cabinet, chaired by Prime Minister Narendra Modi, has given “…in-principle approval for leasing out six airports of Airport Authority of India (AAI)…for operation, management and development under PPP,” the government said in a statement.

‘Increase revenues’

Presently, airports at Delhi, Mumbai, Bangalore, Hyderabad and Cochin are managed under the PPP model. The PPP mode has helped create world-class airports, while also helping the AAI increase its revenues, IT and Law Minister Ravi Shankar Prasad told reporters.

This will be done through the Public Private Partnership Appraisal Committee (PPPAC). Additionally, a committee headed by NITI Aayog CEO with the Aviation Secretary, Economic Affairs Secretary and Expenditure Secretary as its members, has been set up to decide on any issue falling beyond the scope of the PPPAC.

“PPP in infrastructure projects brings efficiency in service delivery, expertise, enterprise and professionalism, apart from harnessing the needed investments in the public sector,” the official statement said.

The airport sector is a top contender among infrastructure sectors in terms of international interest. “International operators and investors prefer brownfield airport expansion opportunities with having more than 3-4 million passenger capacity,” the statement said.

Source: The Hindu

India: all government-run airports are to set up or increase food counters with affordable pricing

Passengers travelling out of Chennai airport may soon be able to grab a bite that’s easy on their pockets, as the Airports Authority of India (AAI) is considering an increase in the number of food counters that sell snacks and beverages at a reasonable cost.

Following a circular issued by AAI headquarters in Delhi, all government-run airports are to set up or increase food counters with affordable pricing. Smaller airports have started to float tenders to install them. Chennai airport, however, may not float a fresh tender but ask its food and beverages (F&B) contractor — Travel Foods Services (TFS) — to set up the stalls.

A senior official of AAI said, “We will consider increasing the number of stalls if there is a demand.”

The company has already set up four such stalls at the terminals following several complaints from passengers on the high cost of food items and water bottles. A TFS official said, “We have two stalls each at the domestic and international terminals. These shops cater to the demand. AAI also displays information about the presence of the stalls on flight information boards.”

As airlines have started to operate flights to small towns, encouraged by regional connectivity scheme, the number of domestic departures has gone up. There is a need for more such shops, as the domestic terminal handles as many as 30 night flights. Passengers reach the airport well before the odd departure hours, and may need access to stalls selling food and beverages at reasonable prices.

Tea and water are priced at above Rs50 at most shops inside the terminals and the security hold area where passengers wait to board planes.

A passenger said the existing shops that sell F&B at cheaper rates should be moved to a prominent location as it was difficult to locate the shops inside the terminals. “The staff manning the stall try to sell a water bottle for Rs50, if the passenger fails to notice that the stall sells items at cheaper rates.”

Sources said the existing F&B contractor did not want more such stalls to be established as it would affect the sales in other stalls that sell products at premium rates.

Source: The Indian Times