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Airport privatisation

Thiruvananthapuram: Now its official. Adani Group entered into the airports business by emerging the highest bidder for five out of the of six non-metro airports including Trivandrum airport run by the Airports Authority of India (AAI) put up for sale by the Union Government.

Kerala government’s effort to retain the airport in its custody by forming a special purpose vehicle and competing in the bid failed to make any result with Adani emerging the highest bidder for the airport when the financial bids were opened on Monday.

The bid for the Guwahati airport could not be opened due to a stay order issued by the Gauhati High Court against the privatisation of the airport. The CIAL which competed for the Mangalore airport could satisfy with distant second place with the Adani quoting the highest bid. GMR which quoted for the Trivandrum and Mangalore airports were not in the picture when the bids opened with the private company quoting the lowest bid for both the airports.

The bids are based on the highest monthly fee per domestic passenger the airport operator has to share with the AAI and not based on revenue share. The letter of approval for the winners in the bid be handed over on February 28. On November 8, the Union cabinet had approved the in-principal nod for leasing out the airports for operation, management and development under Public Private Partnership through Public Private Partnership Appraisal Committee.