Rates for AAI airports to be fixed before privatisation

Civil Aviation ministry hopes this will reduce scope of aggressive bidding, limit cost burden on passengers

Rates for six Airports Authority of India (AAI) airports will be finalised before the issue of bids for the public-private partnership development of the projects. The civil aviation ministry hopes this will reduce the scope of aggressive bidding, limit the cost burden on passengers and improve the profitability of companies managing the airports.

On Tuesday, the AAI issued the Request for Qualification (RFQ) document for Lucknow and Chennai airports. The RFQ process is used to shortlist potential bidders. Over the next few weeks, the RFQs will be issued for Kolkata, Guwahati, Jaipur and Ahmedabad airports. The rate for Chennai and Lucknow airports, finalised earlier this year, could be revised.

Civil Aviation Secretary K N Srivastava confirmed that the government had decided in favour of  pre-bid rate fixation. “The scope for aggressive bidding will reduce,’’ he said.