Mumbai: Opposing the privatisation of the already-developed four state-run airports in the country, global airlines body IATA on Thursday said that an all-out sale will ramp up costs and will only benefit the operator.
Talking to a select group of reporters here, International Air Transport Association (IATA) director general and chief executive Tony Tyler said: "My suggestion is that the government should carry out a rigorous cost-benefit analysis before taking a decision on these four Airports Authority-run airports in Chennai, Kolkata, Ahmedabad and Jaipur."
"Whatever be the decision, it should not lead to repeat of what has happened in Delhi, Mumbai and Bangalore where airport user fees have shot over roof," Tyler added.
Opposing outright privatisation of these four airports, Tyler argued that "if attracting investment is the purpose of selling out these airports to private parties, then there is no logic in that as the AAI has already developed the infrastructure in these facilities.
"But if government is looking at increasing operational efficiencies and not just its revenue maximisation, then it should look at giving away a management contract to a private sector hand and not go ahead with an outright sale so that there is no arbitrary jump in user charges as happened in the privately run facilities in Delhi, Mumbai and Bangalore," he said.
In the past many years, beginning with the second term of the past UPA regime, the aviation ministry has been trying to privatise the Chennai, Kolkata, Ahmedabad and Jaipur airports, even as the AAI had put in thousands of crores in modernising them.
The AAI and ATC unions have been opposing the move tooth and nail, though.
