Airports Authority to be converted into a company by 2010 (Lead)
August 4th, 2009 - 9:15 pm ICT by IANSNew Delhi, Aug 4 (IANS) The government plans to convert the airport regulator Airports Authority of India (AAI) into a company, a senior aviation ministry official said Tuesday.
“We are working out to convert AAI from an authority to a company by next March. This will be done by amending the AAI Act. It will also help AAI to raise funds of its own,” the official said requesting anonymity.
“This will also give a corporate look to AAI and help it raise funds through IPO as it would be a listed company.”
State-run AAI, which runs 125 airports in the country, has said only 15 airports reported profit in 2007-08.
Due to fall in revenues caused by airlines slashing the number of flights to stem mounting losses, AAI plans to shelve the modernisation of at least seven of the 35 non-metro airports it had planned to upgrade.
AAI had sought permission from the government to raise tax-free bonds to the tune of Rs.5,000 crore, but this was not acceded to in the union Budget presented last month.
Besides, the budgetary allocation for AAI has been limited to Rs.99.15 crore, of which Rs.79.15 crore has been allocated for development of airports.
Referring to the recent threat by Indian carriers to suspend operations if airport charges and aviation fuel prices were not slashed, the official said: “They have lost public sympathy. They have to self-regulate”.
He admitted “there is a problem regarding aviation fuel rates and operation costs”, and added: “The aviation ministry has taken up the issue of taxes imposed by states on aviation fuel. But the government is of the view that it cannot take away their (state) revenue without their consent.”
The official also hinted at reducing the productivity linked incentives of Air India employees by at least 40 percent. These incentives constitute a major portion of staff salaries.
Regarding former president A.P.J. Abdul Kalam being frisked by Continental Airlines of the US at Delhi airport recently, the official said the government was in touch with American authorities to ensure that US carriers operating in India followed its aviation norms.
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Tags: abdul kalam, air india, airport charges, airports authority of india, airports authority of india aai, anonymity, aviation fuel prices, aviation ministry, budgetary allocation, continental airlines, crore, former president, fuel rates, ministry official, modernisation, public sympathy, staff salaries, state revenue, tax free bonds, union budget