Airports - News and Analysis

USIDCL to develop Naini-Saini airport

Uttarakhand State Infrastructure Development Corporation Ltd (USIDCL) is initiating tender process to develop the Naini-Saini airport by modernization of infrastructure and by strengthening its runway. The government is keen to invest Rs.450 million but its expansion activties have always run into rough weather. Last time, the tendering was carried out by civil aviation department was questioned by a private airport developer. Govt. has spend around Rs.240 million in acquiring lands for the airport. The scheme of modernization includes expanding the airstrip to 1650 m long and 60 m wide to make it suitable for 70-72 ATR aircrafts and a modern terminal.

Cabinet approves 4 new airports in AP

Union Cabinet has approved 4 new airports in Andhra Pradesh to be developed under public-private partnership model. The identified airports are Jakranpalli in Nizamabad, Ramagundam in Karimnagar, Tadepalligudem in West Godavari and Orvakal in Kurnool. Each airport will come up in an area of 1500 acres and Infrastructure Corp of AP is to act as nodal agency. Resettlement and rehabilitation is to be done by government and it is learnt those who offer high percentage of revenue sharing with government will be selected. Some concessions offered are exemption from VAT, seigniorage and land conversion charges. It will also provide external infrastructure like road, water and power and providing land on lease.

Jacob Consultancy report indicates Indian Airports as lowest

A study done by Jacob Consultancy, an aviation and airport consultancy firm in 2008 indicates the airport charges in India is just around 3.25 to 3.5 % of total airline charges. It is found that it is 16% lower than Toronto airport and even competitive among south east asian airports of Singapore, Bangkok and Beijing. Mumbai airport is ranked 50th among the global airports conducted by the study.

AAI airport too plan to levy User Development Fee (UDF)

Following the lines of private airports of Hyderabad, Bangalore and Delhi, AAI airports like Chennai, Kolkatta, Thiruvanathapuram, Ahmedabad and Goa will collect user-development-fee. Exact amount of fee and commencement date of collection is yet to be notified.

According to Union Minister for Civil Aviation, UDF can be collected when there is a bigger gap on returns on investments on airport modernization when projections go wrong on account of slow-down. It seems Ahmedabad and Thiruvananthapuram had already got the approval on UDF.

 

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