Home Economy Airports Authority to be converted into a company by 2010

Airports Authority to be converted into a company by 2010


New Delhi : The government plans to convert the airport regulator Airports Authority of India (AAI) into a company, a senior aviation ministry official said Tuesday.

“We are working out to convert AAI from an authority to a company by next March. This will be done by amending the AAI Act. It will also help AAI to raise funds of its own,” a senior aviation ministry official said.

“This will also give a corporate look to AAI.”

Regarding former president A.P.J. Abdul Kalam being frisked by Continental Airlines of the US at Delhi airport recently, the official said the government was in touch with American authorities to ensure that US carriers operating in India followed its aviation norms.

Referring to the recent threat by Indian carriers to suspend operations if airport charges and aviation fuel prices were not slashed, the official said: “They have lost public sympathy. They have to self-regulate”.

He admitted “there is a problem regarding aviation fuel rates and operation costs”, and added: “The aviation ministry has taken up the issue of taxes imposed by states on aviation fuel. But the government is of the view that it cannot take away their (state)revenue without their consent.”

The official also hinted at reducing the productivity linked incentives of Air India employees by at least 40 percent. These incentives constitute a major portion of staff salaries.