Tariff-based bids for airport ops

The Ministry of Civil Aviation may seek tariff-based bids from companies seeking to operate airfields at Jaipur and Ahmedabad.
According to reports, bidders quoting the lowest tariff would win the projects. The move is aimed at curbing sharp increases in charges at airports after they are privatised, as seen in some cases that were awarded on a revenue sharing basis. The reports state that the model is being discussed and the cost that the prospective airport operator would incur in terms of expansion or construction would be known to the bidder beforehand. The Airports Authority of India would either ask for a one-time charge for using the infrastructure or lease rentals and modalities are being discussed. Analysts feel the fixed-tariff model isn´t appropriate for sectors such as aviation.