The basic principle of any good policy is that it should be explicit, comprehensive, stable and should aim at achieving whatever are the stated and agreed objectives. Regrettably, our airport policy fails in most of these parameters. Reasons are many but it is suffice to say that we need an urgent (and I really mean very urgent) action on this front. Although I am usually very fond of saying that Indians are good at policy and strategy but very poor at execution, I will make an exception to this as far as the airport sector is concerned. We just do not have our policies clear here.

Indeed, if a foreigner were to walk into the country and try to fathom what our airport policy is, it will take him a very long time to find out what exactly it is about. The FAQs (frequently asked questions) on this would run into several pages. Starting, for example, with the questions on how far does the policy allow you to set up airports near each other; who decides the charging for airport users (by whatever name you may choose to call such charges?user development fees, landing charges, or passenger service fees); who should approve a private/merchant airport; do we need separate airports for low-priced carriers, and so on.

We now have greenfield airports taking off. Older airports, including the big ones such as Mumbai and Delhi and the recent ones like Kochi, face major policy issues (who decides if an airport can be closed for six months, for example, as Kochi seems to be heading for). A new regulator may soon be in place (hopefully in 2008?we have all been waiting for a couple of years now). All the groundwork for a comprehensive policy has already been done. Elections will soon dethrone all policy initiatives if we don?t do this one fast. In fact, I would say that our window of opportunity to push through a comprehensive policy is very small.

While political realities will always cause hurdles, we have a strong minister on our side. If he can successfully push through major public-private partnerships despite all the opposition, policy-pushing should be a cakewalk.

The policy should be based on simple and fundamental principles. With a fast growing demand for air travel?both domestic and international and similarly both passenger and cargo?a policy should aim at promoting healthy competition in a manner that does not disincentivise experienced operators and developers to invest in airport infrastructure and services. User charges are important, no doubt, but returns are equally important to investors.

Let the private sector?s innovation and efficiency determine its business model. The government should only draw a broad framework and not get into micro-managing on a day-to-day basis. Where some services are likely to have monopolistic characteristics, let the government try to look for ways and means of promoting competition. Let there be more focus on service quality and not just on price regulation.

More than everything else, there is a great need for clarity and comprehensiveness in any policy that we will have. In a fast-growing economy, there will be always be difficulties in maintaining the stability of a policy. No doubt we have to be flexible in circumstances that change constantly and evolve as our understanding becomes better. But what is required is the stability of the basic principles and the application of those principles. Flexibility and stability can go together. This is where clarity and comprehensiveness would help the most. We have enough expertise in the country already and, in any case, lessons from the international markets are also readily available.

Even though airports are not a state subject, it is very important to recognise that state governments and local authorities have to be involved in the making of, and later, execution of policies.

A substantial part of the airport business is driven by local economies (and vice-versa in case of, at least, the smaller cities). Ideally, the cities should be partners in airport development. In the absence of adequate finances (and managerial capacities), this has not been the case so far. The government should actively try to promote local involvement, at least in smaller airports. This would also help all the connectivity and coordination issues we are facing today.

And finally, it is absolutely critical that new airport policies are accompanied by a strong directional guidance to the incumbent operator, Airports Authority of India (AAI), on its role. Remaining silent on the AAI?s future is only going to increase its resistance. Out there remains huge expertise that can be and should be leveraged before simply letting the private sector cherry-pick their skills. Any airport policy that does not take into account the aspirations and expertise of the airports authority?s staff is bound to be a failure.

The author is leader, transportation & infrastructure practice, PricewaterhouseCoopers