New Delhi: In what comes as respite to the Airports Authority of India (AAI), the civil aviation ministry has said air traffic control (ATC) operations would be conducted as the company's fully-owned subsidiary.
According to earlier plans, ATC operations were scheduled to come under a separate company, but this would have hit the revenue of the state-owned airports operator.
“We have decided the separate ATC company would function as a fully-owned subsidiary of AAI, and not as a separate company. We may allow it to function as a separate company at a later stage, maybe in around eight years,” said a senior ministry official, who did not want to be identified.
AAI wanted the new subsidiary to function as its subsidiary, as ATC operations account for over 60 per cent of the airport operator's revenue. As of now, the air navigation service comes under AAI. The rest of the revenue comes from the operations of 87 airports across the country, with only 15 airports recording profits. AAI earned Rs 4,186 crore and made a profit of Rs 687 crore in 2008-09. The new company would be called Air Navigation Services Corporation of India.
The equipment used for ATC operations would be transferred to the new entity. Buildings with ATC offices would remain AAI's property.
Revenue from ATC operations include charges for route navigation facilities, terminal navigation and instrument landing. Every time an international flight uses India's airspace, it pays a fee for ATC services
28/08/11 Mihir Mishra/Business Standard
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