Airport privatisation set to take off

mumbai: the days of depressing-looking terminals and dilapidated lounges at major international airports may soon be over. after the finance minister's clearance for take off in the budget speech, the airport authority of india is revving up to offer the four major international airports of mumbai, delhi, chennai and kolkata on a 30-year lease to private players. bidders briefings to attract potential participants have been slotted for the second week of april in delhi and london. major international airport operators, engineering and construction companies and large indian corporates are among those to be invited for the briefings. kpmg, the financial advisor to the aai, has compiled a list of likely bidders. it includes companies such as british airports authority, aeroport de paris, frankfurt airport, zurich airport, schiphol group (which runs the amsterdam airport) and airport companies in australia. nearer home, alterra (the joint venture between changi airport and bechtel, which runs singapore airport), kuala lumpur airport and dnata of dubai are on the list. it also includes large construction companies like siemens, hochtiff, larsen & toubro and others who have been bidding for the new bangalore and hyderabad airports. significantly, airlines will be kept out from the bidding process. the involvement of airlines in the consortium can lead to a monopoly situation preventing equal access to all airlines, aai sources said. another prickly issue about the status of the approximately 7,000 aai employees at the four airports has now been settled. the employees will be on a three-year compulsory deputation to the new airport companies. at the end of the three years, the companies will have the option to send them back and the aai has committed to take them back. aai now operates 122 airports of various sizes all over india and employs around 21,000 people. the employees will be deployed at other airports after the three-year period. aai is working on a voluntary retirement scheme offering an exit clause to those wanting to leave. another issue is the status of other long-term users of aai property such as air-india and indian airlines, both of whom use aai land for housing colonies and other fixed infrastructure. the concession agreement to be signed with the lessors is expected to spell out details of all such agreements. bids will be invited in two stages: a request for expression of interest and a request for proposal. bidders will have to pay aai in two ways: a one-time upfront amount and a pre-determined annual payment linked to the number of passengers transiting through the airport. sources said the bids will be invited for all four airports simultaneously. aai made a net profit of rs 217 crore on a turnover of rs 1,873 crore in 2000-01. about 40 per cent of this revenue came from the four large airports that are to be offered on lease.

Airport privatisation set to take off

MUMBAI: THE days of depressing-looking terminals and dilapidated lounges at major international airports may soon be over.

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