Commercial Activities

1.      Across the world, the trend is towards a very high percentage, ranging from 60-70%, of the total revenue of airport operators being generated from non-aeronautical sources at major airports. In India, although these services are even now provided by private agencies, the comparable figure for AAI at international airports is just 22%. There will be a major thrust towards increasing the share of commercial revenue emerging from non-aeronautical sources. This will help in optimal exploitation of the full commercial potential of airports and make many airports not only viable but capable of generating surpluses for further expansion and development.

2.      In order to maximize the revenue while at the same time maintain transparency, there will be a master plan for development of commercial activities and facilities, as part of the overall master plan approved by the management, for the airport as a whole. The space-use patterns will normally not be deviated from.

3.      In the allocation of space among concessionaires, there will be a strict adherence to stipulated procedures, while maintaining sufficient flexibility in order to ensure quality products and services and attract the holders of reputed brand-names. For this purpose, innovative tendering procedures involving limited tenders, two-bid system, use of net present value of bids spread over several years, grant of management contracts, bunching of similar facilities etc. will be devised.

4.      Except for user developmental fees, there will be total freedom for airport operators in the matter of raising revenue through non-aeronautical charges and there will not be any Government control over the same.

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