The government has proposed a new financial model for building greenfield airports to address the concern of cost of air travel and disputes related to tariff in the country.
As per the new proposal, the concession fee given by the airport operator to the concessioning authority will be based on a 'per passenger aeronautical model'.
Also, the passenger-based model will be the base for the bidding process. At present, the transaction structure for airports, run under joint venture (JV) route is based on revenue sharing basis.
Under the new proposed airport model concession agreement, the total aeronautical collections by concessionaire such as landing and parking charges when measured per passenger basis will not exceed Rs 400.
The concessionaire will have to pay Rs 20 per passenger per year to the concessioning authority and an additional amount as the concession fee.The concession period will be of 40 years.
Apart from this, the 10 percent of the total area will be reserved for real estate development.
Also, the quality of services will be pre-determined, while standards of services will be evaluated every six months by the airport regulator.