AAI may hive off air traffic control services

New Delhi: Air traffic services in the country, so far the sole domain of airport regulator Airports Authority of India (AAI) and the largest source of that agency’s revenues, may soon be hived off as part of a restructuring planned by the civil aviation ministry to set up a specialist entity running air navigation operations—on the lines of the US federal aviation administration—across Indian airports.
To this end, AAI last month invited interest from consultants to conduct a study on possible options for the restructuring and shortlisted three after evaluation—UK’s air navigation service provider Nats En Route Plc., and consultancy and audit firms PricewaterhouseCoopers and KPMG International—before choosing the India offices of KPMG for the job.
The brief to the consultant is clear: to “assist in the corporatization of air navigation services (ANS) either by creating a new government company; or separating ANS from AAI to be undertaken by a subsidiary of AAI.”
KPMG will also need to estimate financial and commercial benefits, identify human resource issues and prepare a roadmap for creation of the corporate entity with specific milestones, according to the tender document for consultants.
The move to create an air navigation services entity different from AAI is to remove any conflict of interest between the two since AAI also owns equity stakes in airports through an eponymous unit.
05/12/07 Tarun Shukla/Livemint

To Read the News in full at Source, Click the Headline

Categories: Airports Dec 2007, New Dec 2007