Private airport players feel the pinch

Private airport operators have requested that a moratorium be placed on revenue sharing for at least three months. The private airports are required to share their revenues with the state-owned Airports Authority of India (AAI), as per the prevailing norms.

The operators have also suggested that they be allowed to levy a fee on air tickets to cover the costs incurred towards deploying additional resources for screening travellers.

The Association of Private Airports Operators (APAO) has told the Civil Aviation Ministry that the corona virus scare has adversely impacted the non-aero revenues due to reduced sales at F&B and retail outlets within the airport.

“Given our focus on passenger convenience, significant time and effort are being spent by senior management at all airports. Infrastructure placed by airports are of a fixed nature and not flexible in response to such fluctuations in passenger demand. The corresponding financial burden is also of a fixed nature in terms of interest outgo and various other expenses,” APAO said.

The airports are facing immediate cash flow pressures in the wake of cancelled flights, but it does not have the flexibility to reduce operating expenses given that they are of a fixed nature.