New Delhi: The Airports Authority of India (AAI) has appointed consultancy firm KPMG to recommend an appropriate regulatory approach for its airports, keeping in mind its unique operating environment and socio-economic obligations.
The AAI manages 125 airports and is the sole provider of air traffic navigation services in Indian air space. The Airports' Economic Regulatory Authority (AERA) has oversight on 10 major AAI airports, while the civil aviation ministry regulates other AAI airports.
The authority had initially supported the 'single till' regulatory approach for airports adopted by AERA, under which an airport is treated as an integrated business and non-aeronautical income streams like retail are clubbed together with user charges like landing and parking fees.
AAI chairman VP Agarwal told ET that he still believes in the 'single till' approach, but hired consultancy firm KPMG to assist in the process of suggesting the appropriate regulatory till due to some 'divergences.'
KPMG's report would be put up to the AAI board for approval soon. However, an initial version mooting a 'dual or hybrid till' approach, under which cross-subsidy from non-aeronautical services to aeronautical services is restricted, has been returned.
14/02/12 Vikas Dhoot/Economic Times
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