AAI eyes Rs 1,500 crore profit this fiscal

AAI eyes Rs 1,500 crore profit this fiscal

Airports Authority of India is expecting a net profit of Rs 1,500 crore this fiscal on account of increase in revenue after the Airports Economic Regulatory Authority (AERA) revised the airport tariffs.

"We have seen improvement in our bottomline because of new increased tariff regime of AERA. We expect to earn a net profit of Rs 1,500 crore," AAI Chairman V P Agrawal said here.

Speaking on the sidelines of a function organised by AAI Officers Association, he claimed that the state-run airport operator would not lose any revenue on account of privatisation of six airports, including Kolkata and Chennai which were recently modernised by it.

"We will not lose any revenue due to privatisation of airports, as they are being leased out" for a period of three decades.

AAI employees and several major political parties have been opposing the government's attempt to privatise the AAI-run airports. The move has also been opposed by a parliamentary committee which has recommended that AAI should enter into management contracts with global airport management firms, instead of merely handing them over to private parties.

Asked about airlines' dues towards AAI, Agarwal said both Jet Airways and SpiceJet owed around Rs 100 crore each against bank guarantees of Rs 80 crore and Rs 60 crore respectively. "Air India has a due of Rs 1,800 crore," he said.

Maintaining that SpiceJet was already on cash-and-carry arrangement for non-payment of dues, he said AAI would soon hold a meeting with Jet and SpiceJet to decide upon a payment schedule.

Asked about the progress on separation of Air Navigation Services (ANS) from the AAI, he said a Cabinet note would be prepared and circulated soon for consideration.

Government is looking at whether there was a need for any amendment in the rule or not, he added.

Earlier, he addressed the conference -- 'DISHA-2013: Indigenisation of Communications, Navigation and Surveillance (CNS), exploring opportunities for creating top notch facilities' to mark the first CNS Officer's Day.

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