Over 50% of AAI's revenue to come from non-aeronautical activities

Mumbai: The trend is already visible at the newly built Bangalore International Airport, where more than 40,000 sq ft of retail space is planned in the first phase
Growing air travel in India will drive airport retailing so much that by 2015 over 50% of revenues of the Airport Authority of India (AAI) is expected to come from non-aeronautical activities, says a joint study of ASSOCHAM and KPMG. Of this, airport retail would comprise 27% of the total revenues.
The non-aeronautical activities in airport retailing would grow to an extent that other revenue sources for AAI would come from hospitality (1%), office (17%), trading concessions (9%), public admission fees (1%) and miscellaneous (45%), adds the study called "Airport Retailing: Need for Innovative Business Model".
Releasing the study, ASSOCHAM President, Sajjan Jindal says that air travelers no longer perceive airports to be waiting lounges. Today, this perception has given way to one in which the travelers expects much more out of an airport in terms of facilities offered, quality of service and support infrastructure.
According to the study, the trend is already visible with the coming up of Bangalore International Airport, where more than 40,000 sq ft of retail space is planned in the first phase with complete focus on real estate development, including five star hotel (Trident Hilton), office space, business center & technology park. The Bangalore airport has set a benchmark for real estate development in airports.
25/09/08 India Infoline.com

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Categories: Airports Sep 2008