Geneva: The Indian Government’s decision to privatise Delhi airport that has seen airport charges rise manifold has been criticised by the International Air Transport Association (IATA).
Calling on Governments to ensure that privatisation should be well regulated, IATA Director-General Tony Tyler said that tax receipts from the economic activity generated through aviation-enabled connectivity far outweighs the short-term economic gains of misguided privatisation.
“India, for example, developed Delhi into a first class hub airport with the participation of private partners. The facilities are great. But the structure of the concession agreement requires the concessionaire to return 46 per cent of top line revenue to the government,” Tyler said.
A consortium led by the Bangalore-based GMR group won the contract for modernising the Delhi airport.
14/12/12 Aneesh Phadnis/Business Line
