Airports Authority of India (AAI) will focus on increasing revenue from non-aeronautical and cargo operations in 2017 on the back of the initiative taken last year, Guruprasad Mahapatra, chairman, AAI said on Monday.
The state run organisation has adopted revenue share mechanism and licence fee escalation proportionate to passenger growth to enhance its non-aeronautical revenue.
With all these efforts AAI plans to increase its revenues from non-aeronautical operations by 32% in FY 17-18 and will be able to meet the Niti Ayog target of 35%.
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AAI will also award the management contract of the Jaipur and Ahmedabad airport by March this year and the employees will be shifted to other airports across the country, Mahapatra said.
“The tenders are already out and the successful bidder will get their own manpower. Existing AAI employees will be deployed somewhere else since we are present across the country,” added Mahapatra.
This is the first time AAI will handover the management of its own airport to a private player.
The state run organisation will also focus on cargo to increase revenues and has formed a separate entity or subsidiary for the purpose with an initial capital of R25 crore. AAI expects to double its revenues from cargo operations by 2018.