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Dec 2006

Regulatory authority on air tariffs soon

     New Delhi: India will soon set up an airports regulatory authority that will determine tariffs and ensure a level playing field for airports, Civil Aviation Minister Praful Patel said on Thursday. Addressing delegates at the start of a three day international exhibition and seminar on airport infrastructure, security and aviation industry here, Patel said the Center is deliberating on the setting up of an Airport Economic Regulatory Authority (AERA) which would look into a host of issues. "We were deliberating with a Group of Ministers into the finalisation of the Airports Economic Regulatory Authority (AERA) which is going to be set up very soon. So, all these issues are being (looked into), the entire fuel work is being put into it," said Patel. Patel called for more public-private partnerships in the sector, saying airport infrastructure needed to be given importance. Citing the modernisation of the Delhi and Mumbai airports as an example, Patel said that private players could improve the airport infrastructure. "We in government look at airport infrastructure as a vital element. We do feel that we are facing the pressures of inadequate infrastructure in our major cities.

     As of today, I can assure you the intent of the government, the speed with which the government is looking at these things objectively. Nobody in India or anywhere in the world, and I met many people in the last two-and-a-half years, people were very sceptical about the process of Mumbai and Delhi joint ventures. Nobody believed within the country... many consortiums came and went thinking that this will never happen and we will be wasting our times. But, this has happened and, it has happened in good time," said Patel. India's busiest airports in New Delhi and Mumbai were taken over by two separate consortia--GMR and GVK in August this year. As per the government's privatisation plan, the consortium will hold 74 per cent equity. The remaining 26 per cent will remain with the Airports Authority of India (AAI) and other government institutions. The country's aviation industry is growing following the launching of a string of new airlines in recent years putting, a massive strain on existing airport infrastructure. Analysts have predicted an annual growth rate of 20 percent over the next five years, as rising personal incomes and low air fares make travel more affordable.
-Dec 7, 2006