Thursday, 13 November 2014

India to Privatise Airports to Reduce User Charges

India’s civil aviation ministry is considering privatising airports through tariff bids as protection against high user charges for airlines and passengers.

Airports Authority of India (AAI) will lease out the airport for 30 years for a fixed fee or rent to the private operator quoting the least tariff to ensure user charges stay low.

The government had earlier this year considered privatising airports by setting landing and parking charges before the award and subsequent increases would be indexed to inflation.

Privatisation of the six airports at Chennai, Kolkata, Lucknow, Guwahati, Jaipur and Ahmedabad, initiated last year by the previous government, was put on ice over differences between the aviation ministry.

The new government will privatise only the Ahmedabad and Jaipur airports instead of the six originally planned. A draft aviation policy announced says management contracts will be issued for the Kolkata and Chennai airports and the privatisation of Guwahati and Lucknow airports has been put on hold.

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