• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Port Info

• Ships in Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• The Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Ashwini Phadnis

Indira Gandhi Airport, Palam... The Government has started restructuring and modernisation of the Delhi and Mumbai airports, and will also begin work on making more than 20 other airports world-class entities.

BARELY four months into its second year in office, and the Dr Manmohan Singh Government is set to soar with its civil aviation plans that took off the first year.

If the first year was devoted to taking steps to ease the capacity constraints in the sky through liberal bilateral air services agreements with various countries including the US, the UK, France, Germany and China, the second year is seeing the Government initiate steps to not only improve the infrastructure but also move towards strengthening the three state-owned airlines — Air India and its 100 per cent subsidiary Air India Express as also Indian Airlines.

To create better airport infrastructure not only has the Government started the process of the restructuring and modernisation of the facilities in Delhi and Mumbai but it will shortly also begin work on making more than 20 secondary airports world class entities.

Despite pessimistic predictions of the process not moving forward, the Government has received bids from six industrial groups for the restructuring and modernisation of the Mumbai airport and five for the Delhi airport.

The five bidders for the Delhi airport include GMR, which has teamed up with the operators of Frankfurt airport, Fraport; Reliance, which has submitted a bid with ASA Mexico; D.S. Construction with a tie-up with Munich airport; Macquire, which has tied up with Airport de Paris; and the Essel group, in association with Turkish operator TAV.

Besides these, the Government has also received a bid for Mumbai from the GVK group, which has a tie-up with a South African airport.

However, the build up to the bids submission was not without its suspense with two key participants — the Singapore-based Changi and German airport operator, Hochtief, withdrawing from the race within 24 hours of each other and days before bidding closed.

The stiff penalty clause of close to Rs 300 crore that had to be borne by the foreign partner was said to be the reason for the two pulling out of the project.

But neither the pull-outs nor the decision of the Airports Authority of India Joint Employees Forum to strike work on September 29 at all the 124 airports had the Government worried.

In fact, soon after the bidding process came to a close, the Civil Aviation Secretary, Mr Ajay Prasad, said: "We are very satisfied with the level of competition. It is very good. If you see other sectors like telecom there were hardly two or three bidders."

While officials are tight-lipped on what would constitute a world-class airport in Delhi and Mumbai, sources maintain that among the things the Government would expect the successful bidders to do is ensure that the modernised airports offers all facilities to passengers including cutting back on the waiting time for check-in and security check and also the time taken to come out after landing. But creation of infrastructure is not the only thing that has been engaging the Government's attention.

After several years, there has been a flurry of activity to ensure that the state-owned airlines are in a position to acquire aircraft fast.

After more than two years, Indian Airlines' 43 aircraft acquisition proposal was finally given the nod, while Air India and AI Express are anxiously waiting for the Public Investment Board meeting slated for later this month. It is widely expected that the PIB will not only clear Air India's the 50 aircraft fleet acquisition but also the 18 purchases proposed by AI Express.

Having successfully negotiated the pitfalls in this sector, one can only hope the Government does not lose track now and that it can achieve the goals it has set.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Aviation sector reaching for the sky

Copyright © 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line