Air traffic to be out of AAI hands

New Delhi: Indian air navigation services, the lifeline of an airport, could soon be hived off from the Airports Authority of India (AAI). In a move that would bring India in line with much of the world, these services could be free to upgrade, evolve and create another successful world-class corporation like the ONGC. Government plans are understood to be well on their way towards slimming AAI's responsibilities.
Airport operators in most other countries don't manage air traffic, explains a former civil aviation secretary, because they are generally private parties unlike India's state-controlled AAI. A sensitive service such as navigation is generally not left in private hands, he says, adding the focus is skewed here.
It is thought there is a conflict of interest between private airport operators in Delhi, Mumbai, Hyderabad and Bangalore and the government-owned AAI. Air Navigation Services (ANS) include communication, navigation, surveillance (CNS) and ATC. Civil aviation ministry sources admitted that "private operators felt AAI had undue advantage over them in levying various navigation charges."
Separating air navigation from overall airport management would not come a day too soon. This was recommended by the Naresh Chandra panel. Three years ago, the Roy Paul Committee too had recommended it.
The ministry asked consultancy firm KPMG to suggest the way forward. It recommended: Taking air navigation away from AAI.
Hive off ATC: Create a separate ATC company that works for AAI on a contract basis. This would allow it to work for any air navigation company in the world. But this isn't feasible as this service is vital for the security of the country.
Hive off ANS: Turn it into a government-owned corporation with AAI holding a stake and representation from the aviation sector. "It'll give them responsibility and credit for good performance and help them focus on their core function," say experts. This is the most likely scenario. KPMG refused to comment.
14/09/08 Shobha John/Times of India

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

Categories: Airports Sep 2008