Airports Authority of India launches tenders for six O&M concessions

The Airports Authority of India (AAI) has issued Requests for Proposals (RFP) for the operation, management and development of the following six international airports:

  1. Jaipur International Airport; serves Jaipur, the capital of the northeastern state of Rajasthan, located 13km from the city centre. Handled around 4.76 million passengers in the year ending March 2018, making it the eleventh busiest airport in India.
  2. Chaudhary Charan Singh International Airport; serves Lucknow, the capital of the northern state of Uttar Pradesh, located 12km from the city centre. Handled over 4.75 million passengers in the year ending March 2018, twelfth busiest airport in India.
  3. Lokpriya Gopinath Bordoloi International Airport; located at Borjhar, 26km from Dispur, the capital of the state of Assam, and 28km from Guwahati, the largest city in the state and the north-east region. Handled almost 4.67 million passengers in the year ending March 2018.
  4. Manguluru International Airport; serves Mangaluru, a coastal city in the southwestern state of Karnataka. Handled just under 2.27 million passengers in the year ending March 2018.
  5. Sardar Vallabhbhai Patel International Airport; serves Ahmedabad, the largest city in the western state of Gujarat, located 9km from the city centre, as well as state capital Gandhinagar. Handled over 9.17 million passengers in the year ending March 2018, eighth busiest airport in India.
  6. Thiruvananthapuram International Airport; serves Thiruvananthapuram, the capital of the southwestern state of Kerala. Handled just under 4.5 million passengers in the year ending March 2018.

The term of the concession agreements shall be for a period of fifty years. The selected concessionaires shall broadly be responsible for operations and management of the existing airport assets as well as for designing, engineering, financing, construction and development of further/additional air-side, terminal, city-side and land-side infrastructure.

The concessionaires will pay a monthly per-passenger fee pay to AAI, in respect of each passenger (both domestic and international) handled at their respective airports.

Proposals for all six airports are due on 14 February 2019. AAI plans to issue Letters of Award (LOAs) on 28 February.

Source: Infra PPP

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

TFS bags contract to operate,manage F&B outlets at Goa airport

Travel Food Services (TFS), which is into travel-focused food and beverages (F&B) and retail business, has bagged master concessionaire contract for operating and managing F&B outlets at the Goa airport, a senior airport official said Tuesday. The company, which currently operates more than 280 outlets across airports, railway stations and highways, spread across 19 cities, won the mandate after competitive bidding.

«TFS has won the contract as a master concessionaire for retail and food and beverages for Goa airport at a cost of Rs 3.98 crore per month,» Goa airport director CH Negi told reporters in Vasco. As part of the contract, the company will revamp the existing F&B facility, he said.
It will also invite reputed food and beverages brands, both domestic and international, to set up their outlets at the airport.

Negi said that the company has already opened 13 outlets, adding that all the outlets, including food courts, will be operational by the year-end. «Revamping the food and beverages facility at the Goa airport would be an exciting opportunity for the company,» said Sunil Kapur, chairman, TFS.

The company has major concessions across key airports including Delhi, Mumbai, Chennai, Kolkata and Bengaluru, he added.
Source: Zee Business

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