Tuesday, February 28, 2017

Did you know? Every 9 in 10 AAI airports are running a loss

The Airports Authority of India (AAI) is making losses at 90 percent of the airports it operates, reports Business Standard . This is due to a lack of aviation activity at the airports, with 30 of the 109 loss-making airports under it completely bereft of any aircraft traffic. The government's regional air connectivity initiative is planned around bringing these airports back into use by subsidising airlines to fly to such locations. Only 13 of the 125 airports under its belt are currently profit making. The AAI earned Rs 10,824 crore as income in the financial year 2016, out of which, a third came from revenues made by private airports. The Delhi International Airport has to pay 45.99 percent of its revenues to AAI, while the Mumbai International Airport shells out 38.7 percent. The public sector entity also receives consession fees of 4 percent of revenues of the Hyderabad and Bengaluru airports. AAI attributes the losses to low traffic at airports which translates into meagre revenues. With revenues at a minimum, the airports always end up with higher expenditures over revenues.
28/02/17 Moneycontrol