New Delhi: Voicing reservation over privatisation of airports, global airlines body Iata has said governments should resist the temptation of earning revenue through such exercises and evolve policies supportive to all players to spur growth in the aviation sector.
“An investor needs to make a fair return on his investment. But if you (government) are taking away all that money from the top, the operator will have to charge more to make some money, which eventually comes from the passengers and it keeps the fares up. So the government shouldn’t be greedy about that,” Iata’s director general and chief executive Tony Tyler said during a recent interaction.
Observing that privatisation is not a “panacea” and does not solve all the problems, he said there is a “particular temptation” when governments privatise airports.
He sounded critical of the model adopted by the government in privatising Delhi and Mumbai airports in which government reduced its holdings to 26 per cent but still gets a revenue share of 45.99 per cent and 38.7 per cent, respectively.
22/12/14 Oman Tribune
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“An investor needs to make a fair return on his investment. But if you (government) are taking away all that money from the top, the operator will have to charge more to make some money, which eventually comes from the passengers and it keeps the fares up. So the government shouldn’t be greedy about that,” Iata’s director general and chief executive Tony Tyler said during a recent interaction.
Observing that privatisation is not a “panacea” and does not solve all the problems, he said there is a “particular temptation” when governments privatise airports.
He sounded critical of the model adopted by the government in privatising Delhi and Mumbai airports in which government reduced its holdings to 26 per cent but still gets a revenue share of 45.99 per cent and 38.7 per cent, respectively.
22/12/14 Oman Tribune
