In a recent decision, the aviation ministry has decided to privatise 15 airports in the country. The process will kick off with six airports and Ahmedabad is one of them. When the Ahmedabad airport is privatised, air passenger will have to be ready to shell out 10-20 per cent more. To meet market demands, infrastructure needs to be upgraded and for that the government is involving private players, said a senior government official. With privatisation, services may improve but it will also mean increased airport fees and user development fee (UDF).
Currently, the UDF for domestic and international terminal per passenger per flight at Ahmedabad is Rs 110 and Rs 410 respectively. According to rough estimates, with privatization the UDF will double. Even the parking rates may go up. Privatization will involve such areas as the terminals, flight handling, and shops. Air Traffic Control will remain with the government.
Implementing public-private partnership in airports is a good step, said G Raghuram, a professor at IIM-A. Government-run organisations have constraints. A private player will bring entrepreneurial thinking to the table. Airline industry has to cope with the current global market standards and a private player can do that.
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