 "Govt proposes new financial model for building greenfield airports")
The Centre on Tuesday proposed a new financial model for building greenfield airports aimed at making air travel more affordable and addressing disputes related to tariff.
Under the new financial model, the concession fee given by the airport operator to the concessioning authority will be based on a “per passenger aeronautical model”.
“The passenger-based model will also be the base of the bidding process," Civil Aviation Minister Suresh Prabhu told reporters while unveiling the transaction structure.
The new model will encourage increased private investment, the minister said. Currently, the transaction structure for airports, run under joint venture route, is based on revenue sharing model.
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