Airport privatisation


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Description on work of AAI and their effect

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Airport privatisation

  1. 1. BUSINESS NEWS PAPER ANALYSIS MANGEMENT ASPECTS “AAI against Kolkata, Chennai Airport Privatization” , - Economic Times dated 23rd July,12
  2. 2. AAI ( Airport Authority of India) Home Previous India Airports Authority of India (AAI) was constituted by an Act of Parliament and came into being on 1st April 1995 by merging erstwhile National Airports Authority and International Airports Authority of India AAI manages 125 airports Next – 11 International Airports Help – 81 Domestic Airports – 25 Civil Enclaves at Defense Airfields – 08 Customs Airports – AAI has entered into a Joint Venture at Mumbai, Delhi, Hyderabad, Bangalore and Nagpur Airports to upgrade these Airports and emulate the world standards – AAI's successful implementation of Automatic Dependence Surveillance System (ADSS), using indigenous technology, at Calcutta and Chennai Air Traffic Control Centers –
  3. 3. Home Previous The following are the function of AAI-:  passenger facilities Next  Air navigation services Help  security  Aerodrome facilities  HRD Training  IT implementation
  4. 4. PPP(Public–private partnership ) Home • Public–private partnership (PPP) describes a government service or private business venture which is funded and operated through a partnership of government and one or more private sector companies • Total number of 454 airport & airstrips are under ppp in India • Centre for Asia Pacific Aviation (CAPA), Over the next 12 years, India's Civil Aviation Ministry aims at 500 operational airports • Many domestic as well as international players are showing interest in the growth and development of the aviation sector with immense focus Previous Next Help on the development of the airports
  5. 5. Plan of PPP Home  A projected investment of USD 8.5 billion has been planned for the development of Indian airports during the 11th plan. Previous Next Help  Passenger traffic is projected to grow at a CAGR of over 15% in the next 5 years  100% FDI is permissible for existing airports; FIPB approval required for FDI beyond 74%  100% FDI under automatic route is permissible for greenfield airports  100% equity ownership by Non Resident Indians (NRIs) is permitted  100% tax exemption for airport projects for a period of 10 years
  6. 6. Potential of ppp • High demand for investments in aviation infrastructure. • Favorable demographics and rapid economic growth point to a continued boom in domestic passenger traffic and international outbound traffic • Home Greenfield airport projects planned in resort destinations and emerging metros such as Goa, Pune, Navi Mumbai, Greater Noida and Kannur • Modernization / up gradation of metro airports induction of partners for Chennai, Kolkata expected subsequently. Previous Next Help
  7. 7. Why privatization ?????????????? Home 1. The airport infrastructural facilities in India are very poor. Previous Next 2. All the major airports in the country face passenger traffic problem due to lack of modern facilities. Help 3. The Government of India failed to make further investment in the airports due to fund constraints
  8. 8. Kolkata airport (AAI) Passenger traffic - 20 million Home Air traffic Previous Terminal Next Help - 784 domestic, 138 international/week - 2 terminal for parking
  9. 9. Mumbai facilities & services Home Previous Next Help • Airline LoungesAirline Ticket CountersATMsBaggage ReclaimCheck-in Counters/Self Check-in KioskChildcareForex ServicesInter Terminal TransfersLeft Luggage FacilityMedical ServicesParking FacilityPostal ServicesPrayer RoomSmoking LoungeSpecial Needs PassengersWi-Fi
  10. 10. conclusion  Get good infrastructure facility Home Previous  Traffic problem will be solved  Growth in passenger traffic leading to improved profit margins resulting from economies of scale Next  Growth in aviation industry Help  ppp can maintain balance benefit for all stakeholder, government, private entity & pasengers