Foreign firms may be left out of modernization deal

Mumbai: Foreign operators of airports who have been jostling to line up domestic partners for modernizing Airports Authority of India-managed airports in Chennai, Kolkata and some of the three dozen other cities in India may soon find themselves completely out of the picture, thanks to the government’s U-turn on privatization.
“Considering that the government has opened up only airside development to private players at the 35 non-metro airports, we will bid for this on our own and will not require any foreign airport operator in this area. We may, however, team up with real estate developers if the need arises,” says Manish Kalghatgi, a GVK Power & Infrastructure Ltd spokesperson.
GVK had tied up with Airports Co. South Africa to modernize the Mumbai airport.
Unlike core airport operations, where most Indian firms do not have the experience required to?improve?airport operations, city-side development encompasses developing food and beverage malls, convention centres and hotels. This calls for more of real estate development expertise and marketing in the hospitality industry, rather than expertise in reducing traffic congestion in the air or ensuring faster take-offs and landings for planes.
Civil aviation minister Praful Patel recently said the government would itself upgrade the Chennai, Kolkata and 35 other non-metro airports in India located in towns with a population exceeding a million residents.
“There’s no role in this for airport operators per se as this is more for real estate players,” says Peng of Changi Airports. “On the other hand, if the idea is to develop an airport city— a meetings and incentives, conference and exhibitions destination for a city like Mumbai, then that’s where our expertise would come in to bear. In the given situation, our business plan will be modified to suit the current scenario.”
Bob Johnson, CEO of Dubai Aerospace Enterprise, says, “We are more interested in airport opportunities in India.”
16/06/07 Yassir A. Pitalwalla/Livemint

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Categories: Airports Jun 2007, Foreign Jun 2007, General Aviation Jun 2007, New Jun 2007