New aviation policy looks at restructuring AAI

New Delhi: A restructuring of the Airports Authority of India (AAI) may involve hiving off some of its services, including air traffic management, and also introducing private and foreign participation in its services, as per the proposed civil aviation policy recommendations.

According to government sources, the policy 'Vision-2020,' which has been referred to a Group of Ministers for wider consultations, suggests that efforts should be made to raise funds from the capital market and various modes of Public-Private Partnership (PPP) "on a fast-track mode" as part of restructuring the profit-making public sector unit.

At an appropriate time, the government would permit AAI to hive off some of its services, either by setting up wholly owned subsidiaries or through joint ventures with international partners, sources said.

The Union Cabinet had decided yesterday to refer this policy to a GOM for broader debate on the proposals, including the norms for allowing private carriers to fly abroad. The proposals also included the hiving off of Air Traffic control (ATC) activities from AAI and converting it into a separate entity.

This particular proposal has drawn a certain amount of fire from within political circles as it is felt that separation of ATC and other services would lead the profit-making PSU to lose a substantial chunk of its revenues.