Ensure economic viability of airports to attract private investments: Assocham

With aviation sector facing turbulent times, industry body Assocham today called for fair valuation and viability of all stakeholders while fixing airport tariffs and creating an environment for attracting infrastructure investments.
Operating viability is paramount to ensure healthy inflow of private funds in future public private partnerships (PPPs), it said in representation to the Airports Economic Regulatory Authority of India (AERA). Airports will require an investment of Rs 675 billion during the 12th Five Year Plan (2012-17) of which Rs 500 billion is expected to be the share of private sector.
But Delhi airport operator is making heavy losses due to increased cost of operating a huge facility while being able to charge the tariff as per the Airports Authority of India (AAI) rate card common for all airports which is not even in line with inflation, said The Associated Chambers of Commerce and Industry of India (Assocham)
``Even with the increase in tariff proposed by the regulator, Delhi International Airport Limited (DIAL) is expected to face liquidity crunch in 2012-13 and 2013-14 which will jeopardise the viability of operations,`` said secretary general D.S. Rawat.
27/02/12 My iris

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Categories: airports Feb 2012