'Govt should develop aviation infrastructure in hinterlands'

NEW DELHI: As efforts are on to develop non-metro airports, a top global aviation expert has said the government should take the lead in developing aviation infrastructure in Tier-II and Tier-III cities with the private sector pitching in to provide commercial support.

"One way to mitigate the risk (of private investment in non-metro airports) is that the government provides basic infrastructure like airfields and terminal buildings. It is only then that private sector can come in to provide for commercial activities," Angela Gittens, Director General of the Airports Council International (ACI), told PTI here.

"You should not expect private parties to come up and invest in such areas. There should be a balanced approach," said the head of the global airports' body with 586 operators as its members.

She said the government should play a role in growing these hinterland markets by providing land, runways, taxiways and other basic infrastructure.

Citing example of an airport in the UK, Gittens said the airport operator and airlines joined hands to attract air traffic and grew their market.

"They shared the risk to bring in more services. But sometime, it works and sometimes it doesn't. There is also a political risk for the government to develop infrastructure in the hinterland and this risk has to be compensated for.

"So the government should itself take the risk or pay someone else to take the risk," she said.

Asked whether the public-private participation (PPP) was the best airport development model, Gittens said in most countries, the airports are owned and operated by the government or its agencies, including in the US and Europe.

"But there is corporatisation of airport management and most employees are not government employees. The airport operators have their own Boards, carry out their own operation and management, have their own financial structure, profit- and-loss accounts and their own balance sheets," she said.

Lauding the PPP experiment in India, Gittens said "other potentially large markets are closely watching the Indian experience. So, India is a leader and has to assume greater responsibilities".