Centre to convert AAI into a company by next Mar

New Delhi: The Centre is planning to convert the airport regulator Airports Authority of India (AAI) into a company.
“We are working out to convert AAI from an authority to a company by next March. This will be done by amending the AAI Act. It will also help AAI to raise funds of its own,” Civil Aviation Minister Praful Patel told reporters here.
“This will also give a corporate look to AAI,” Patel said adding that it will enable the new firm to raise funds from market for carrying out modernisation of a large number of major airports across the country.
Also this enable the state-AAI to get listed in the stock market. “Our objective is to list AAI,” Patel said.
The AAI manages 126 airports, including 11 international airports and is currently modernising major airports in Kolkata and Chennai and 35 non-metro airports. It has huge properties including land and other assets across the country.
Patel told Parliament earlier that AAI is planning to spend Rs 12,434 crore for modernising airports and air traffic services across the country during the XIth Plan period. These development projects would be financed through internal resources and borrowings by the AAI. Of the 125 airports managed by the AAI, 86 are operational. As many as 15 of them made profit during 2007-08, he said.
The number of profit-making airports during the last three years was 13 in 2005-06, 14 in 2006-07 and 15 in 2007-08, he said. Also, Patel had pointed out that major domestic airlines owed around Rs 250 crore to the AAI for using various facilities, including air traffic control, parking space and landing facilities. These include Kingfisher Airlines, Jet Airways and Air India.
05/08/09 ExpressBuzz

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Categories: Airports Aug 2009, New Aug 2009