The Airports Authority of India (AAI), which manages 125 airports, is the loser in the privatisation of six non-metro airports.
The decision to select Adani Group as the concessionaire for the profit-making Thiruvananthapuram, Mangaluru, Ahmedabad, Jaipur, and Lucknow airports on the basis of the highest monthly per-passenger fee that the concessionaire will offer to the AAI will hit the mini-ratna category- I public sector enterprise.
This, a departure from the revenue-sharing model that the AAI had adopted in the existing privatised international airports such as Delhi, Mumbai and Bengaluru, will turn a money-spinner for the private player. The clause that companies without previous experience can bid has also come as a blessing for the private player.
₹169-crore profit
In the case of Thiruvananthapuram international airport, which catered to the needs of 43 lakh passengers in 2018, the AAI could generate a profit of ₹169 crore after expenses and works.
AAI sources told The Hindu that Adani Group that quoted a per-passenger fee of ₹168 to emerge the highest bidder for the airport would have to pay only ₹73 crore annually to the AAI.
“If the concessionaire needs to pay only ₹73 crore based on traffic projections till the 50-year period ending 2069, one can imagine the profit the group is going to generate,” he added.
Eyebrows have been raised over the passenger fee quoted by companies such as GMR Group.
AAI sources said it seemed an understanding had been reached between the top two competitors to keep others from entering the field. Except Thiruvananthapuram, the private player need not invest much on these airports.
Although the AAI has announced that the communication navigation services will be retained under it , the fate of employees in the other wings is yet to be decided.
“The management has not even called us for talks. Confusion prevails over our future. We have decided to seek legal remedy,” S. Ajith Kumar, branch secretary of the Airports Authority Employees Union, said.