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AAI seeks funds to keep growth pace

AAI seeks funds to keep growth pace
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Airports Authority of India (AAI) has sought additional funding to keep pace with the fleet and traffic expansion expected in India over the next five years. AAI, which invested around Rs 1,200 crore in modernisation projects last year, is working on 14 greenfield airports in India, which have been granted in-principle approval.

India's airlines have placed orders worth $40 billion, but aviation experts have pointed out that poor infrastructure, debt, high fuel taxes and rising interest rates would be disturbing for the airline industry in India. AAI has already disclosed plans to borrow Rs 900 crore this year and Rs 800 crore next year to fund the upgradation of 10 non-metro airports out of the total 35 such airports.

The AAI expects air traffic from non-metro airports to increase to 45 per cent of the total air traffic in the country in the next few years, up from 30 per cent now.  

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