Plan panel reviewing airport development policy framework

AAI has to reassess its current policy and evaluate whether modernisation of city-side operations alone can be given to the private sector,which can turn into real estate development alone. In the absence of a holistic policy,the aviation sector seems to be confused, the official said. City-side development entails development of retaile spaces,hotels and parking lots at an airport,while air-side works refers to the expansion and strengthening of runways for wide-bodied aircraft operations,extension and construction of aprons for more parking space for aircraft,link taxiways and parallel taxi tracks.

Last year,the AAI had invited expression of interest for development work at Amritsar and Udaipur airports,which received around 25 proposals. After six companies were short listed,the bidding process ran into controversies and was stalled as no request for proposals were sought further by the Authority. The terms and conditions stipulated by the current concessionaire agreement are not acceptable to bidders. The AAI wants to give out the commercial operations outside the terminal to a private bidder,whereas bidders want not only commercial operations but also the terminal-side development as they are looking at management of an airport rather than developing real estate alone, said PriceWaterhouse Coopers executive director Amrit Pandurangi. AAI,meanwhile,is undertaking minor city-side works at some airports.