Millennium Post

Govt moves to hike profitability of airports in the red

Govt moves to hike profitability of  airports in the red
The Airport Authority of India has started focusing on converting loss-making airports into ‘viable and profitable’ ones said minister of state in civil aviation minister GM Siddeswara in Lok Sabha while replying to a question on loss-making airports.

Siddeswara, while explaining the steps taken/being taken by the government to create profitability from these loss-making airports, said in Parliament on Monday that this can be achieved through ‘development of cargo activities, enhancement of non-aero revenue through revision of rates and awarding of contracts though master concessions.’

‘Allowing operation of flying schools at non-operational airports, encouraging MRO (Maintenance,
Repair and Overhaul) activities and revision of base rates,’ are the other steps being taken, the minister informed Lok Sabha.

Out of 125 airports in India, 93 are incurring huge losses at present. Topping the list of loss-making airports in 2012-2013 is Jaipur with a loss Rs 72.30 crore. Close in line is Lucknow airport facing a loss of nearly Rs 64 crore, followed by Amritsar losing Rs 61.13 crore.

Next in line figure Bhopal with a loss of Rs 52.52 crore, Ahmedabad with Rs 52 crore and Aurangabad with Rs 50.67 crore. Also facing a similar situation Guwahati airport faced a loss of Rs 48.55 crores, followed by Bangalore airport with Rs 44.25 crore, close to it are Varanasi with a Rs 43.86 crore loss and Indore with Rs 42.74 crore loss. In 2012-2013 Delhi (Safdarjung airport) has lost Rs 36.20 crore and Dehradun nearly Rs 33 crore.

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