ATC operations to remain with AAI for now
29 Aug 2011
New Delhi: Air traffic control (ATC) operations will remain with the Airports Authority of India (AAI) for the time being with a separate company being formed for its operations functioning as AAI's fully-owned subsidiary.
The new company would be called Air Navigation Services Corporation of India.
There were plans earlier to hive off these operations as a separate company altogether. It is now being appreciated that such a course of action would have hit AAI's revenue hard.
Ministry of civil aviation sources said it was likely, however, that the subsidiary may be spun off as a separate entity in about eight ears time.
The equipment used for ATC operations would be transferred to the new entity. Buildings with ATC offices would remain AAI's property.
It is being given to understand that ATC operations account for over 60 per cent of the airport operator's revenue. The rest of the revenue comes from the operations of 87 airports across the country, of which only 15 airports record profits.
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