Proposed aviation policy suggests AAI restructuring

New Delhi: Indicating the introduction of private and foreign participation in the Airports Authority of India (AAI), the proposed Civil Aviation Policy recommends its restructuring and hiving off some of its services, including air traffic management.
The policy 'Vision-2020,' which has been referred to a Group of Ministers for wider consultations, suggests that efforts would be made to raise funds from the capital market and various modes of public-private partnership (PPP) "on a fast-track mode" as part of restructuring the profit-making public sector unit, sources said.
At an appropriate time, the government would permit AAI to hive off some of its services, either by setting up wholly-owned subsidiaries or through joint ventures with international partners, they said.
The proposals include hiving off Air Traffic Control (ATC) from AAI and converting it into a separate entity.
There have been differing views among political and industry circles on some of the proposals made in Vision-2020, which led the government to have a further discussion on it.
A section among these circles feel that separation of ATC and other services would lead the PSU to lose a substantial chunk of revenues, affecting its profitability, the sources said.
16/06/07 PTI/The Hindu

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