NEW DELHI: With a view to providing better service quality at the upcoming airports, Ministry of Civil Aviation has proposed a new transaction structure based on per passenger aeronautical yield.
Aviation minister Suresh Prabhu said that the new policy will do away with the old revenue share structure and will help inviting more investors.
“The new model will be based on passengers entering the airport. This will be the most transparent method. With new technology, the headcount is far easier. We are also in the process of introducing Digiyatra,” Prabhu said.
Speaking further, the minister said that the new model will encourage increased private investment. Currently, the transaction structure for airports, run under the joint venture route, is based on a revenue-sharing model.
Minister of State for Civil Aviation Jayant Sinha said the new concession agreement is meant to realise the growth in the aviation sector. “This necessitates massive investment in the aviation space and construction of more Greenfield airports. The new structure will make travel more affordable as the yield per passenger will be pre-determined by the concessioning authority,” he said, adding that its guiding principles are affordability, sustainability and predictability.
Under the proposed model concession agreement, the total aeronautical collections by concessionaire (airport operator) like landing and parking charges when measured per passenger basis will not exceed Rs 400. The concessionaire has to give Rs 20 per passenger per year to the concessioning authority plus an additional amount as the concession fee.
“It is this additional amount of concession fee that will be the biddable parameter. The additional amount could range from Rs 10 to Rs 50 depending on how attractive the concession is. The concession period will be 40 years,” Civil Aviation Secretary R N Choubey said.
The proposed model will be placed in the public domain for feedback till September 14. Upcoming greenfield airport at Jewar in Greater Noida will be constructed under the new model. Moreover, 10 per cent of the total area has been earmarked for real estate development under this.
The other advantage is that the quality of services will also be pre-determined and standards of services will be evaluated every six months by the airport regulator.