Plethora of restrictions hobble airport development

In the last few years the government of India has taken very bold initiatives in the development of airports in India. The current regime for development of airports is probably the most liberal in the world. The frontrunners have been new airports at Hyderabad and Bengaluru and the re-development of Mumbai and Delhi airports. The experiences in development of these airports have thrown up a large number of issues which need to be addressed.
The major revenue generation avenues in an airport project may be categorised as revenues from aeronautical services and those from non-aeronautical services. Revenues from aeronautical services generally consist of landing charges, parking charges, passenger service fee, etc. Revenues from non-aeronautical services accrue from: aero-related non-aeronautical services such as revenues from cargo handling, aircraft refueling, ground handling, aircraft maintenance, etc.; revenues from commercial activities within the terminals such as advertisements, retail outlets, car parking, etc.; and revenues from other commercial activities outside the terminals such as real estate, hotels, business parks, etc.
At major airports across the world, 60-70% of the total revenue of airport operators is generated from non-aeronautical sources. However, contractual restrictions on land usage for non-aeronautical services restrict the development at these airports.
10/03/10 Atul Sharma/Financial Express

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Categories: Airports Mar 2010