InvestorQ : Do you see any major impact on airline companies like Spice Jet and Indigo through the airport privatization of 6 airports proposed.
Neelam Naik made post

Do you see any major impact on airline companies like Spice Jet and Indigo through the airport privatization of 6 airports proposed.

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NISHA Nayak answered.
2 years ago
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Airports Authority of India (A.A.I) recommended privatization of airports at Amritsar, Varanasi, Bhubaneswar, Indore, Raipur and Trichy in the latest round of airport privatization, towards making them more productive and people friendly. It may recollected that around 6 months ago, the A.A.I had privatized airports at Lucknow, Ahmadabad, Jaipur, Mangalore, Thiruvananthapuram and Guwahati for operation, management and development through public-private partnership (PPP) model.

The A.A.I, which comes under the aegis of the Ministry of Civil Aviation, owns and manages more than 100 airports across the country. In the first round of airport privatisation, the Adani Group bagged contract for all six airports by winning the bids with huge margins. The winning bid is based on per passenger fee offered by the bidders and Adani had outbid the competition on all parameters. While 3 have been leased out to Adani, the other 3 are yet to be approved.

Airport privatization and enhanced investment in airport infrastructure in smaller towns is the key to aviation growth and is likely to be value accretive for Spice and for Indigo.
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