AAI to develop Amritsar Airport ON PPP model

New Delhi/Chandigarh: The Airports Authority of India (AAI) is working on the modalities for the city side development and maintenance of cargo operation of Amritsar airport under the public-private partnership (PPP) model. Sources said that very soon the AAI would float tender inviting private players to undertake the project. At present, AAI itself handles the cargo operations.
According to Amritsar airport Director VSP Chinson, the scope of the work includes development and operation of cargo facilities and city-side development of the Rajasansi International Airport here. It is estimated that about 25 acres will be developed on the city-side for commercial exploitation, car parking and other amenities.
Earlier, in August 2007, the AAI handed over the contract to Mumbai-based JAC Air Services Pvt Ltd for running cargo operations for five years at the airport. However, the company suspended its services in August 2009, as it was incurring huge losses. Speaking to Business Standard, JAC Air Services Managing Director Lalit Jobanputra said, “We had a plan to place Amritsar as one of the most important international cargo hubs in the world, but we incurred huge losses in the project. In absence of cooperation from local authorities, exporters were reluctant to send goods through the airport. As a result the project proved to be unviable for us, as we were incurring losses to the tune of Rs 10 lakh per month. So we suspended our services in August 2009.”
13/01/10 Vijay C Roy/Business Standard

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

Categories: Airports Jan 2010