New Delhi : The Centre has scrapped the plan to corporatise the Airports Authority of India (AAI), which would have allowed it to raise funds from the market to modernise airports. According to sources, the long-pending plan to hive off Air Navigation Services (ANS), which handles air traffic control operations, from AAI has been put in the cold storage. This means the government's plan to list AAI on the stock exchanges will not take off.
Earlier, the government had halted the process of privatisation of airports at Kolkata, Chennai, Jaipur and Ahmedabad. Listing of the AAI on stock exchanges along with the development of the four airports under a public-private partnership model were part of the National Democratic Alliance (NDA)'s draft civil aviation policy.
"If you create a separate entity, a huge bureaucratic setup will have to be created and the air traffic controllers will have to be licensed. In the current setup, if all the conditions of International Civil Aviation Organization are met, no such requirement is there. Further, Indian ANS is rated to be quite high on global standards," said a senior civil aviation ministry official.
26/08/15 Somesh Jha/Business Standard
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Earlier, the government had halted the process of privatisation of airports at Kolkata, Chennai, Jaipur and Ahmedabad. Listing of the AAI on stock exchanges along with the development of the four airports under a public-private partnership model were part of the National Democratic Alliance (NDA)'s draft civil aviation policy.
"If you create a separate entity, a huge bureaucratic setup will have to be created and the air traffic controllers will have to be licensed. In the current setup, if all the conditions of International Civil Aviation Organization are met, no such requirement is there. Further, Indian ANS is rated to be quite high on global standards," said a senior civil aviation ministry official.
26/08/15 Somesh Jha/Business Standard
