New Delhi: In a major boost to private airport developers, the Union government has said it will continue to encourage airport development through the public-private partnership (PPP) model.
Further, the Union civil aviation ministry has decided to adopt a 'hybrid till' model to determine airport charges for future airports, a move supported by the private developers.
However, the government has made clear that the Airports Authority of India (AAI) will closely monitor the cost of airports built through the PPP route. This comes in the wake of various Comptroller and Auditor General (CAG) reports, which have often asked the government to monitor the finances of the Delhi and Mumbai airport run by private companies. The Centre said AAI would monitor the finances so that the cost of airport development was under check.
By proposing 'hybrid till' model for all future airports, the civil aviation ministry has taken a different view from Airports Economic Regulatory Authority of India's stand of adopting a single-till model. The airlines, too, prefer a single-till model, as it reduces their charges and passenger fees. The civil aviation ministry is in favour of the hybrid-till model and had issued directions to use 'hybrid till' for determining tariff at Bengaluru and Hyderabad airports.
31/101/5 Business Standard
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Further, the Union civil aviation ministry has decided to adopt a 'hybrid till' model to determine airport charges for future airports, a move supported by the private developers.
However, the government has made clear that the Airports Authority of India (AAI) will closely monitor the cost of airports built through the PPP route. This comes in the wake of various Comptroller and Auditor General (CAG) reports, which have often asked the government to monitor the finances of the Delhi and Mumbai airport run by private companies. The Centre said AAI would monitor the finances so that the cost of airport development was under check.
By proposing 'hybrid till' model for all future airports, the civil aviation ministry has taken a different view from Airports Economic Regulatory Authority of India's stand of adopting a single-till model. The airlines, too, prefer a single-till model, as it reduces their charges and passenger fees. The civil aviation ministry is in favour of the hybrid-till model and had issued directions to use 'hybrid till' for determining tariff at Bengaluru and Hyderabad airports.
31/101/5 Business Standard
