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AAI's net profit flies 29.5% to Rs 2,537.36 crore in FY16

 PTI |  2016-07-22 23:26:30.0  |  New Delhi

AAI

National airports operator AAI has enhanced its net profit to Rs 2,537.36 crore in the last fiscal as against a profit-after tax of Rs 1,959.22 crore in FY 15, Parliament was informed on Thursday. The Airports Authority of India has earned a profit-after tax of Rs 1,959.22 crore during the financial year 2014-15 and Rs 2,537.36 crore in 2015-16, Minister of State for Civil Aviation Jayant Sinha said in a written response in Lok Sabha.

In reply to a question on eligibility of payment to the AAI employees, the Minister said that a few employees have now become entitled to receive bonus following the enhancement of eligibility limit. 

The employees of AAI were not eligible for payment of bonus as per the then prevailing eligibility norms, Sinha said. "However, a few employees have now become eligible for payment of bonus due to enhancement of eligibility limit from Rs 10,000 to Rs 21,000 as per the provisions of Payment of Bonus (Amendment) Act, 2015, as published on January 1, 2016," he said. AAI has initiated action for payment of bonus to eligible employees in accordance with the provisions of the said Act, he said. Meanwhile, in response to another Member's query on airport charges, the Minister said that under the new Civil Aviation Policy, future tariff at all airports will be calculated on a hybrid till basis.

"Ministry of Civil Aviation have formulated a National Civil Aviation policy, 2016 with a vision to make flying affordable for the masses and to provide affordable and sustainable air travel for passenger. The objective is to enhance regional connectivity through fiscal support and infrastructure development and to enhance ease of doing business through deregulation and simplified procedure," Sinha said in his written response to the question. Accordingly, future tariff at all airports will be calculated on a hybrid till basis, unless otherwise specified for any project being bid out in future, the Minister said.

"It is also provided that 30 per cent of non-aeronautical revenue will be used to cross subsidise aeronautical charges.

"Further Airports Economic Regulatory Authority (AERA) while determining tariff for aeronautical services in respect of major airports consider the user development fee as revenue enhancing mechanism, to bridge any revenue shortfall so that airport operator is able to get a fair rate of return on his investment," he said. Route navigation Facility Charges, Terminal Landing Charges, Landing, parking and housing, fuel throughput charges, aerobridges charges, cute counter charges, cargo ground handling, passenger service fee and user development fee are various type of fees that the airline operators have to shell out for carrying out their flight operations.

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