Monday, March 13, 2017

Global players eyeing smaller Indian airports

New Delhi: Europe's Fraport AG and Vinci Airports SAS are among 11companies that have bid for management contracts to run Ahmedabad and Jaipur airports, underscoring global aviation's increasing interest in one of the world's fastest-expanding air-travel markets.

"We have received bids from five international airport operators, two domestic airport operators and a couple of companies that run shopping malls to manage our airports in Ahmedabad and Jaipur," a senior Airports Authority of India (AAI) official, who did not want to be named, told ET.

Companies that run airports in European financial centres such as Zurich, Frankfurt, Dublin, and Lisbon are competing with local rivals GMR Infrastructure and GVK Power & Infrastructure for the two airports that serve the north-western tourist hotspot of Rajasthan and the industrial hub of Gujarat.
Besides the traditional airport operators, shopping-mall companies, such as Select City Walk and the Bird group, have submitted bids to run the two aviation hubs. The companies couldn't immediately be reached for comment. New Delhi-based, state-run AAI owns and manages 125 airports across India, including those in the metro centres of Kolkata and Chennai.
As part of its plan to improve service standards at the airports it owns, AAI has started the process of awarding management contracts, and invited bids for these two international airports. The target for the new operators will be to improve services and increase non-aeronautical revenues at these airports. The management contract will be for a period of 10 years and the operator will get a fixed payment of `22 crore annually.
13/03/17 Mihir Mishra/Economic Times