While the central government’s plan to develop as many as 50 low-cost airports is still being worked out, over 90 airports operated by the state-controlled Airports Authority of India (AAI) have been incurring losses, primarily from low air traffic.
Responding to questions on loss-making airports, minister of state for civil aviation Mahesh Sharma, told the Lok Sabha late last month that the losses to AAI-operated airports are primarily because of low air traffic movements, resulting in lesser aeronautical revenue, low non-aeronautical revenue potential and basic operating expenditure on account of regulatory/IATA and security requirements.
“The Airports Authority of India (AAI) has initiated several steps to make the loss-making airports viable and profitable by development of cargo activities, enhancement of non-aeronautical revenue through revision of rates and awarding of contracts through master concessions, allowing flying schools at non-operational airports, encouraging maintenance, repair and operations (MRO) activities and revision of base rates”, Sharma said.
10/12/14 Rhik Kundu/Financial Express
To Read the News in full at Source, Click the Headline
Responding to questions on loss-making airports, minister of state for civil aviation Mahesh Sharma, told the Lok Sabha late last month that the losses to AAI-operated airports are primarily because of low air traffic movements, resulting in lesser aeronautical revenue, low non-aeronautical revenue potential and basic operating expenditure on account of regulatory/IATA and security requirements.
“The Airports Authority of India (AAI) has initiated several steps to make the loss-making airports viable and profitable by development of cargo activities, enhancement of non-aeronautical revenue through revision of rates and awarding of contracts through master concessions, allowing flying schools at non-operational airports, encouraging maintenance, repair and operations (MRO) activities and revision of base rates”, Sharma said.
10/12/14 Rhik Kundu/Financial Express
