AAI eases bidding norms for airports

In an attempt to attract maximum number of airport infra builders, the Airports Authority of India (AAI) has changed the tenure of the operations and maintenance contracts for the Ahmedabad and Jaipur airports to 20 years from 10 years earlier, and will allow airline operators to bid for them in an effort to improve revenue for successful bidders, Chairman Guruprasad Mohapatra said that several global players were interested in the two projects and AAI has decided to privatise the two airports except their airside facilities. The successful bidders will manage the passenger terminals, aprons, and car parks, thereby, making it the second attempt by the government to involve private players in the two airports. Domestic airport operators GMR and GVK and global players Daa International Airport and Flughafen Zurich have shown interest in them. AAI has decided to select the bidders on fee per passenger rather than on the more common revenue sharing formula, while increasing the tenure of the contract. This will allow the operator to retain a higher share of the commercial outcome, said an industry insider.