New Delhi: The standardisation of tariff mechanism is expected to improve cash accruals for existing greenfield airports besides attracting investments for the future projects under the PPP mode, ratings firm ICRABSE -2.80 % said today.
To ensure uniformity and level-playing field across various operators, the government, in its newly-announced civil aviation policy, said the future tariffs at all airports will be calculated on a hybrid till basis, unless otherwise specified for any project being bid out in future.
There are broadly three approaches in regulatory till methodology (to calculate charges at airports) -- single till, dual till and hybrid till.
In the hybrid model, the charges are calculated by taking all the aeronautical and 30 per cent of the non-aeronautical revenue into account.
"ICRA sees the standardisation of tariff mechanism, in particular the 'till factor' for all airports in the government's new aviation policy, as a move that would improve cash accruals for existing greenfield airports and attract future investments for developing airports under the PPP model," the ratings firm said in a report.
24/06/16 PTI/Economic Times
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To ensure uniformity and level-playing field across various operators, the government, in its newly-announced civil aviation policy, said the future tariffs at all airports will be calculated on a hybrid till basis, unless otherwise specified for any project being bid out in future.
There are broadly three approaches in regulatory till methodology (to calculate charges at airports) -- single till, dual till and hybrid till.
In the hybrid model, the charges are calculated by taking all the aeronautical and 30 per cent of the non-aeronautical revenue into account.
"ICRA sees the standardisation of tariff mechanism, in particular the 'till factor' for all airports in the government's new aviation policy, as a move that would improve cash accruals for existing greenfield airports and attract future investments for developing airports under the PPP model," the ratings firm said in a report.
24/06/16 PTI/Economic Times
