Loss-hit airport on recovery runway

A perennially loss-making body of the Airports Authority of India (AAI) __ the Jaiprakash Narayan International Airport, Patna __ appears to be on a recovery path given the continuous reduction in the gap between its income and expenditure.
From a revenue gap of Rs 6.37 crore in 2005-06 and Rs 4.47 crore in 2006-07, the airport incurred a loss of only Rs 3.93 crore in 2007-08 __ a marked improvement despite almost the same number of flights during this period.
Increase in non-traffic revenue has played a major role in the turnaround. The revenue collected from this source was less than Rs 50 lakh in both 2005-06 and 2006-07, but it crossed the Rs two crore mark in 2007-08. The total revenue collection (traffic and non-traffic) in the last fiscal year was Rs 10.93 crore.
The current trend of increase in non-traffic revenue, however, would be difficult to sustain as there is limited scope of growth on this front. "Space constraint is a major hurdle for attracting more non-traffic revenue," said a senior AAI official.
He said the only option left under the given circumstances was to increase the number of commercial flights.
12/05/08 Sanjeev Kumar Verma/Times of India

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

Categories: Airports May 2008