Chennai: The privatisation of Chennai airport could run into trouble. The Airports Authority of India (AAI) plans to award long-term contracts to set up food and beverages counters and retail and duty free shops inside the terminals before finalising the tender for privatisation.
The move to push through the 10-year commercial contracts, before the airport is privatised in three months, has attracted criticism from the industry that specialises in businesses inside airports, senior AAI officers and a parliamentary committee on urban development.
If long-term contracts are finalised, private firms may not be able to generate non-aeronautical revenue. The new owner would want to utilise floor space in a scientific manner to maximise revenue from non-aeronautical charges.
Sharad Yadav, MP and chairman of parliamentary committee on urban development and former minister of civil aviation, has written to civil aviation minister Ajit Singh criticising the "undue haste' in rolling out tenders for retail, parking, F&B and duty free separately at Chennai and Kolkata airports. "I can understand that contracts for the facilities are given as a total package under privatisation, but the decision to issue tenders for non-aeronautical facilities and privatisation of airports separately is not right. I am sure this will lead to huge loss to AAI," his letter said.
16/09/13 V Ayyappan/Times of India
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The move to push through the 10-year commercial contracts, before the airport is privatised in three months, has attracted criticism from the industry that specialises in businesses inside airports, senior AAI officers and a parliamentary committee on urban development.
If long-term contracts are finalised, private firms may not be able to generate non-aeronautical revenue. The new owner would want to utilise floor space in a scientific manner to maximise revenue from non-aeronautical charges.
Sharad Yadav, MP and chairman of parliamentary committee on urban development and former minister of civil aviation, has written to civil aviation minister Ajit Singh criticising the "undue haste' in rolling out tenders for retail, parking, F&B and duty free separately at Chennai and Kolkata airports. "I can understand that contracts for the facilities are given as a total package under privatisation, but the decision to issue tenders for non-aeronautical facilities and privatisation of airports separately is not right. I am sure this will lead to huge loss to AAI," his letter said.
16/09/13 V Ayyappan/Times of India
