Airport Privatisation

Q: Hi I would like to know people's view on Airport Privatisation. Why Government is privatising these airports ? What will be it's impact on real estate ? Will there be any increase in fare ?

Kanthi Sridhar, Bangalore

18th October 2013

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Replies (4)

This will help in monetizing the airport in a better way along with analyzing the economic benefits irrespective of greenfield or brownfield projects.

Abhishek, Bangalore

18th October 2013

Comment

Heard that these airports will be given to the private parties for a period of 30 years. AAI may not have much participation as it's given to the private parties. But the authority, during the period of 30 years will be getting revenue shares which will be decided on the basis of discussions held between themselves.

Rameswari, Bangalore

18th October 2013

Comment

Airport Authority of India has spent thousands of crore for modernization and development.. AAI had recently modernized Kolkata Rs 2,325 crore . The Lucknow airport has come up with a new terminal building . Do you know Airport Authority of India has 26 per cent share in private airports of Mumbai and Delhi and 13 per cent in Bangalore and Hyderabad..

Jackie,

18th October 2013

Hey Rameswari... the fares in this regard will be fixed by the Airport Economic Regulatory Authority, though companies associated with the project are apprehensive that there is no such to fix rates. So there are chances for increase in fares or it can remain stable.

Gajendra V, Bangalore

18th October 2013

Comment

@Gajendra, Rameswari, According to me..privatization will affect air travelers. The cost of services, user development fee and airport development fee at least by 20 to 50 % and this will increase the cost of flying...So I think fares will be increased

Harsha Mahipal , Bangalore

18th October 2013

For privatisation of six airports in India, a meeting was planned between Indian and international airport developers with officials from the Planning Commission. The six airports included Chennai, Kolkata, Jaipur, Ahmedabad, Lucknow and Guwahati. This move made by the government is reason enough for companies like GMR and GVK, which are renowned for airport development projects. These companies feel that this move by the government is likely to bring companies in the real estate and manufacturing sector .

Harsha Mahipal , Bangalore

18th October 2013

Comment

With the cost of privatisation of Lucknow airport Rs. 500 crore and of the Chennai airport at Rs. 1200 crore, it still lags behind when compared to the costs incurred in privatisation of the Delhi or Mumbai airports.

Gajendra V, Bangalore

18th October 2013

Do you have any idea on rates ? Will there be any increase in fares ?

Rameswari, Bangalore

18th October 2013