New Delhi: With the activities of country's airports authority failing to receive adequate budgetary support, the ministry of civil aviation now plans to convert the Airports Authority of India (AAI) into a public limited company, according to senior ministry officials.
''We are working out to convert AAI from an authority to a company by next March. This will be done by amending the AAI Act. It will also help AAI to raise funds of its own,'' senior ministry officials said requesting anonymity. ''This will also give a corporate look to AAI and help it raise funds through IPO as it would be a listed company.''
Only 15 of the 125 airports operated by the AAI reported profits in 2007-08.
With revenues dipping, as airlines continue to slash flights to stem mounting losses, AAI may now shelve modernisation of at least seven of the 35 non-metro airports it had planned to upgrade.
AAI's bid to raise tax-free bonds to the tune of Rs5,000 crore did not receive favour from the finance ministry in the annual central budget. It also found its budgetary allocation restricted to Rs99.15 crore, of which Rs79.15 crore has been allocated for development of airports.