AAI seeks cash for giving up big airports

New Delhi: Airports Authority of India, the country’s largest airport operator, has decided to seek compensation from the government for the revenue loss suffered due to closure of commercial operations at two of its money spinning airports in Hyderabad and Bangalore. The move follows finance ministry’s refusal to issue Rs 5,000-crore worth of tax-free bonds sought by AAI to help it meet the shortfall in revenue.
“The government’s decision to shut commercial operations at the Hyderabad and Bangalore airports has resulted in a revenue loss of Rs 300 crore, ” a senior AAI official, who did not wish to be identified, told ET, adding that it should be compensated for the loss.
The AAI is upgrading 35 non-metro airports in the country in addition to two major airports in Chennai and Kolkata with an estimated investment of Rs 12,434 crore.
While the Delhi and Mumbai airports have also been privatised, the private companies running the two airports are required to share a substantial portion of the revenue generated with AAI. The two airports contribute about Rs 900 crore annually to the kitty of public sector airport operator.
30/01/10 Nirbhay Kumar/Economic Times

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Categories: Airports Jan 2010