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AAI may scrap modernisation of seven airports

Thursday, 09 Jul 2009
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The Airports Authority of India (AAI) plans to scrap the upgradation of about seven of the 35 non-metro airports. The move follows a reduction in revenue caused by airlines slashing the number of flights to stem mounting losses.

AAI had planned to spend at least Rs 6,440 crore by 2011-12 for modernisation of the 35 airports. The airports that were being revamped included Ahmedabad, Amritsar, Guwahati, Jaipur, Udaipur, Thiruvananthapuram, Lucknow, Goa, Madurai, Mangalore, Agatti, Aurangabad, Khajuraho, Rajkot, Vadodara, Bhopal, Indore, Nagpur, Visakhapatnam, Tiruchirappalli, Bhubaneswar, Coimbatore, Patna, Port Blair, Varanasi, Agartala, Dehradun, Imphal, Ranchi, Raipur, Agra, Chandigarh, Dimapur, Jammu and Pune.

The authority proposes to take tackle the shortfall in modernisation costs by seeking government approval to raise Rs 5,000 crore from a sale of tax-free bonds, increasing commercial development of airport properties, recovering dues from airlines and oil companies etc.

Also See:

AAI plans investment for development of airports (02-Jun-09)

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