AAI to diversify into airport management services

20 Apr 2023 CW Team

The administration of airport operations, including airside, terminal, and other services like parking, food and beverage outlets, is included in the management services provided by the airport. AAI will also offer the airports navigation and air traffic management services. Leading government officials claimed that it was now essential for revenue diversification and keeping a consistent labour force with experience in airport management.

Thus, AAI and the government of Uttar Pradesh have a 30-year agreement for the operation and management of five state-owned airports: Aligarh, Azamgarh, Chitrakoot, Muirpur, and Shravasti. Similar contracts between AAI and Steel Authority of India (SAIL) have also been inked for the operation of Rourkela (Odisha), Bokaro (Jharkhand), and Burnpur (West Bengal).

These SAIL-owned airports currently operate non-scheduled flights for SAIL aircraft or VIP transportation. These airports will be able to conduct commercial operations under AAI's administration.

"Several corporate entities, PSU behemoths, and state governments own airport strips that, with proper management, may support regular commercial jet operations. They are urged to collaborate with AAI on this as AAI has the knowledge and personnel to oversee such operations. Thus, this may prove to be a new source of income, according to a government official. He continued by saying that the authority and the Karnataka government were having a similar conversation on the Shivamogga airport, which had recently completed construction of a new terminal.

The government leased six more prestigious airports to the Adani group last year, in addition to the earlier privatisation of Delhi, Mumbai, Bangalore, and Hyderabad airports. Another 25 AAI airports have been designated for asset monetisation by 2025 under the National monetisation Pipeline.

"Because the government intends to privatise the majority of the major airports, AAI must locate other locations for the deployment of its staff. These are highly skilled individuals, and they are capable of managing such a wide range of operations, according to the official. When airports are privatised, AAI employees have the option of accepting terms and conditions-based employment with the new owner. Employees up to the level of assistant general manager will remain posted at respective airports for a further three years, per the concession agreement signed with the Adani group during the privatisation of six airports in Lucknow, Ahmedabad (Gujarat), Mangaluru, Jaipur, Guwahati, and Thiruvananthapuram.

State-owned airport operator Airport Authority of India intends to offer airport management services in order to ring fence its future profits. Since the government intends to lease the top 25 AAI-owned airports to private businesses, diversification has become imperative. The administration of airport operations, including airside, terminal, and other services like parking, food and beverage outlets, is included in the management services provided by the airport. AAI will also offer the airports navigation and air traffic management services. Leading government officials claimed that it was now essential for revenue diversification and keeping a consistent labour force with experience in airport management. Thus, AAI and the government of Uttar Pradesh have a 30-year agreement for the operation and management of five state-owned airports: Aligarh, Azamgarh, Chitrakoot, Muirpur, and Shravasti. Similar contracts between AAI and Steel Authority of India (SAIL) have also been inked for the operation of Rourkela (Odisha), Bokaro (Jharkhand), and Burnpur (West Bengal). These SAIL-owned airports currently operate non-scheduled flights for SAIL aircraft or VIP transportation. These airports will be able to conduct commercial operations under AAI's administration. Several corporate entities, PSU behemoths, and state governments own airport strips that, with proper management, may support regular commercial jet operations. They are urged to collaborate with AAI on this as AAI has the knowledge and personnel to oversee such operations. Thus, this may prove to be a new source of income, according to a government official. He continued by saying that the authority and the Karnataka government were having a similar conversation on the Shivamogga airport, which had recently completed construction of a new terminal. The government leased six more prestigious airports to the Adani group last year, in addition to the earlier privatisation of Delhi, Mumbai, Bangalore, and Hyderabad airports. Another 25 AAI airports have been designated for asset monetisation by 2025 under the National monetisation Pipeline. Because the government intends to privatise the majority of the major airports, AAI must locate other locations for the deployment of its staff. These are highly skilled individuals, and they are capable of managing such a wide range of operations, according to the official. When airports are privatised, AAI employees have the option of accepting terms and conditions-based employment with the new owner. Employees up to the level of assistant general manager will remain posted at respective airports for a further three years, per the concession agreement signed with the Adani group during the privatisation of six airports in Lucknow, Ahmedabad (Gujarat), Mangaluru, Jaipur, Guwahati, and Thiruvananthapuram.

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