New Delhi: To safeguard passengers against high charges once projects are awarded, the civil aviation ministry is considering awarding airport management contracts to private operators in Chennai, Kolkata, Lucknow, Guwahati, Jaipur and Ahmedabad at pre-determined rates, instead of on a cost-plus basis.
A ministry senior said, “We are working out the formula for determining the revenue-share agreement between the private operator and the Airports Authority of India (AAI). What we broadly want is pre-determining rates so that there is some certainty in the charges to be levied on passengers. Airport operators will also be incentivised to increase efficiency when there is a specified limit.”
The model being considered is in line with the Planning Commission’s recommendation to determine landing and parking charges at the six airports identified for privatisation before the award of the project and to link the increase in rates to Wholesale Price Index-based inflation. In December, the ministry said the commission’s suggestion was likely to push up charges, as these would increase even after the operator had recovered investment.
Read news in full 01/03/14 Sharmistha Mukherjee/Business Standard
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