NEW DELHI: The Narendra Modi government has linked the development of no-frills airports to financial viability, a move that may lead to jettisoning of many of the 50 low-cost airports that the previous UPA government identified for building in small cities.
The finance department of the civil aviation ministry has decided that a no-frills airport should be built only if it earns a return on investments (RoI) of 12%, a top civil aviation ministry official said. "This will be difficult to achieve for all no-frills airport we have planned," said the official, who did not want to be identified. "We have told them we cannot build all 50 airports planned with 12% RoI aim — maybe 60% of them can be build, but we need to build the rest 40% too," the official said.
09/07/15 Mihir Mishra/The Economic Times
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The finance department of the civil aviation ministry has decided that a no-frills airport should be built only if it earns a return on investments (RoI) of 12%, a top civil aviation ministry official said. "This will be difficult to achieve for all no-frills airport we have planned," said the official, who did not want to be identified. "We have told them we cannot build all 50 airports planned with 12% RoI aim — maybe 60% of them can be build, but we need to build the rest 40% too," the official said.
09/07/15 Mihir Mishra/The Economic Times
