New Delhi: To safeguard airlines as well as passengers against high user charges, the ministry of civil aviation is planning on bidding out airports on basis of tariff specified by private sector operators.
According to the model chalked out by the Ministry of Civil Aviation, an airport identified for privatisation will be awarded to the private sector operator specifying the lowest tariff. The airport would be leased out to the concessionaire by the Airports Authority of India (AAI) for a period of 30 years in lieu of a fixed fee or lease payments to ensure certainty in levied charges.
A senior government official said: "Our experience with privatisation projects earlier has shown us that when projects are awarded on a cost-plus basis, tariffs are determined on the basis investments made by the operator. User charges consequently shoot up. We are now looking at a model where airports can be privatized on the basis of the tariff specified by the bidders."
The move to privatise airports at pre-determined rates, rather than on a cost-plus basis, has also been deemed to keep in check airport charges payable by airlines after award of projects.
13/11/14 Sharmistha Mukherjee/Business Standard
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According to the model chalked out by the Ministry of Civil Aviation, an airport identified for privatisation will be awarded to the private sector operator specifying the lowest tariff. The airport would be leased out to the concessionaire by the Airports Authority of India (AAI) for a period of 30 years in lieu of a fixed fee or lease payments to ensure certainty in levied charges.
A senior government official said: "Our experience with privatisation projects earlier has shown us that when projects are awarded on a cost-plus basis, tariffs are determined on the basis investments made by the operator. User charges consequently shoot up. We are now looking at a model where airports can be privatized on the basis of the tariff specified by the bidders."
The move to privatise airports at pre-determined rates, rather than on a cost-plus basis, has also been deemed to keep in check airport charges payable by airlines after award of projects.
13/11/14 Sharmistha Mukherjee/Business Standard
