Idea of privatisation of air traffic management floated: AAI Executive Director
19 Jun 2008
Mumbai: Airports Authority of India (AAI) executive director VK Kalra has said that the idea for the privatisation of India's air traffic management (ATM) system has been floated. These services are currently handled by the AAI.
The privatisation of India's ATM system could be a highly debated issue, given the safety and security implication it has in the aviation sector. Moreover, with the current year being an election year, privatisation of India's airspace is realistically unlikely to occur any time soon. However, corporatisation is a more likely step, in which case the ATM services would be managed by a separate government owned entity.
Given the need for significant investments in upgrading ATM infrastructure, a corporatised structure with greater financial discipline and accountability could be a preferable management structure. India is expected to invest in excess of $560 million in ATM over the next five years.
