Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...
Airport privatisation
1. BUSINESS NEWS PAPER ANALYSIS
MANGEMENT ASPECTS
“AAI against Kolkata, Chennai Airport Privatization”
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- Economic Times dated 23rd July,12
2. AAI ( Airport Authority of India)
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India Airports Authority of India (AAI) was constituted by an Act of
Parliament and came into being on 1st April 1995 by merging erstwhile
National Airports Authority and International Airports Authority of India
AAI manages 125 airports
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– 11 International Airports
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– 81 Domestic Airports
– 25 Civil Enclaves at Defense Airfields
– 08 Customs Airports
– AAI has entered into a Joint Venture at
Mumbai, Delhi, Hyderabad, Bangalore and Nagpur Airports to upgrade
these Airports and emulate the world standards
– AAI's successful implementation of Automatic Dependence
Surveillance System (ADSS), using indigenous technology, at Calcutta
and Chennai Air Traffic Control Centers
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The following are the function of AAI-:
passenger facilities
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Air navigation services
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security
Aerodrome facilities
HRD Training
IT implementation
4. PPP(Public–private partnership )
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Public–private partnership (PPP) describes a government service or private
business venture which is funded and operated through a partnership of
government and one or more private sector companies
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Total number of 454 airport & airstrips are under ppp in India
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Centre for Asia Pacific Aviation (CAPA), Over the next 12 years,
India's Civil Aviation Ministry aims at 500 operational airports
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Many domestic as well as international players are showing interest in
the growth and development of the aviation sector with immense focus
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on the development of the airports
5. Plan of PPP
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A projected investment of USD 8.5 billion has been planned for the
development of Indian airports during the 11th plan.
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Passenger traffic is projected to grow at a CAGR of over 15% in the next 5
years
100% FDI is permissible for existing airports; FIPB approval required for FDI
beyond 74%
100% FDI under automatic route is permissible for greenfield airports
100% equity ownership by Non Resident Indians (NRIs) is permitted
100% tax exemption for airport projects for a period of 10 years
6. Potential of ppp
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High demand for investments in aviation infrastructure.
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Favorable demographics and rapid economic growth point to a continued
boom in domestic passenger traffic and international outbound traffic
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Greenfield airport projects planned in resort destinations and emerging
metros such as Goa, Pune, Navi Mumbai, Greater Noida and Kannur
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Modernization / up gradation of metro airports induction of partners for
Chennai, Kolkata expected subsequently.
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7. Why privatization ??????????????
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1. The airport infrastructural facilities in India are
very poor.
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2. All the major airports in the country face passenger
traffic problem due to lack of modern facilities.
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3. The Government of India failed to make further
investment in the airports due to fund constraints
8. Kolkata airport (AAI)
Passenger traffic - 20 million
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Air traffic
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Terminal
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- 784 domestic,
138 international/week
- 2 terminal for parking
9. Mumbai facilities & services
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Airline LoungesAirline Ticket CountersATMsBaggage
ReclaimCheck-in Counters/Self Check-in
KioskChildcareForex ServicesInter Terminal
TransfersLeft Luggage FacilityMedical ServicesParking
FacilityPostal ServicesPrayer RoomSmoking
LoungeSpecial Needs PassengersWi-Fi
10. conclusion
Get good infrastructure facility
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Traffic problem will be solved
Growth in passenger traffic leading to improved profit margins resulting from
economies of scale
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Growth in aviation industry
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ppp can maintain balance benefit for all stakeholder, government, private
entity & pasengers