AAI aims to increase revenue from cargo operations in 2017

Jan 17, 2017: Addressing media in New Delhi recently, Dr Guruprasad Mohapatra, Chairman, Airport Authority of India (AAI), said that the organisation will focus on cargo to increase revenues and has formed a separate entity or subsidiary for the purpose with an initial capital of Rs 25 crore. AAI expects to double its revenues from cargo operations by 2018, according to media reports.

In addition, AAI also plans to increase its revenues from non-aeronautical operations by 32 per cent in FY 17-18 and will be able to meet the Niti Ayog target of 35 per cent. The state run organisation has adopted revenue share mechanism and licence fee escalation proportionate to passenger growth to enhance its non-aeronautical revenue.

AAI will also award the management contract of the Jaipur and Ahmedabad airport by March this year and the employees will be shifted to other airports across the country, Mohapatra said. “The tenders are already out and the successful bidder will get their own manpower. Existing AAI employees will be deployed somewhere else since we are present across the country.” This is the first time AAI will handover the management of its own airport to a private player.