‘Air India may look at acquiring equity in airports’

RELATED NEWS Unified face of Air India on show from Aug 1 Air India eyeing partner for ground handling Rule of 3 dominates skies with 80% mkt share Mumbai airport: Slum rehab issue to be resolved soon More Indian carriers may fly abroad Nifty BSE | NSE 25/05/12 Are Mutual Funds betting on Nifty?

New Delhi, July 29

Air India could look at acquiring a stake in airports to ensure that the airlines operations are not hampered, the Chairman and Managing Director, Mr V. Thulasidas, has said.

"Airport is one of the new areas in to which the airline should enter. Especially now with airports passing into private hands, it is becoming increasingly necessary to venture into this area. In India, we cannot have a regime where we do not get adequate leverage at airports. We need to find a way to get into Delhi and Mumbai airports. Getting equity at an airport would help ensure that we do not face too many problems," said Mr Thulasidas. The airline, however, has not yet initiated any move to acquire equity in airports in India or abroad nor set aside any quantum of funds for making such a foray.

At present, the airports in Delhi, Mumbai, Hyderabad and Bangalore are being modernised with private sector participation. A majority of Air India flights originate or pass through Delhi and Mumbai, where a consortium led by the GMR and GVK has won the mandate to modernise the airports.

The modernisation of Hyderabad airport is also being done by the GMR group.

The Chairman pointed out that it was not uncommon for airlines to pick up equity in airports abroad. "In Munich airport where Lufthansa has equity participation, the airline has a whole new terminal for itself and other members of the Star Alliance. We are the biggest airline having the largest number of flights into and out of India and this should also be reflected in the allocation of space, slots and boarding gates," the AI chief felt.

Taken from Business Line

thehindubusinessline.in