Govt moots 'merchant airport' to manage air traffic

NEW DELHI: Aiming at expeditiously creating infrastructure to meet the burgeoning air traffic needs, the government is finalising a policy on 'Merchant Airport' to allow private players to build and run airports without government funding.

The government has held a meeting with the private sector and other stakeholders to evolve such a concept and a policy initiative in this regard is likely to be finalised shortly, official sources said.

It is understood that 100 per cent FDI would be allowed in these airports, though the government is yet to take a decision on whether foreign airlines or airport operators would be allowed to participate.

The meeting, convened by Civil Aviation Secretary Ashok Chawla on Wednesday, was attended by representatives of industry chambers, airport operators, consultants, regulatory bodies like DGCA and BCAS and infrastructure companies.

'Merchant Airports' have been conceptualised as those which are entirely created by private parties with their own resources, without any government funding. These airports would, however, function subject to safety and security oversight of the government.

The participants at the meeting felt that while there were no set international practices which could be used as benchmark for merchant airports, such facilities were required given the massive growth in air traffic, the sources said.

Such airports are expected to come up in areas of high population density and more air traffic, they said. As large parcels of land would be required to develop these private airports, the assistance of the state governments was necessary, it was felt.