Even as the Centre is taking steps to privatise selected airports under the Airports Authority of India (AAI), including the Calicut International Airport, in the next phase, the six airports privatised by the Centre — Ahmedabad, Mangaluru, Lucknow, Guwahati, Jaipur and Thiruvananthapuram – have contributed a total of ₹896 crore as Per Passenger Fee (PPF) to the AAI since handing over of the airports till February of last financial year.
Among the six airports, Thiruvananthapuram International Airport, which was handed over to Ahmedabad-based Adani Group in October 2021, has contributed a sum of ₹91.12 crore as PPF in the last fiscal, which was the bidding parameter during the auction of six airports. Interestingly, according to an estimate prepared by government agencies ahead of the auction, it was estimated that AAI would earn a profit of ₹179 crore for the financial year 2020-21 (on the basis of the PPF offered by the winning bidder for Thiruvananthapuram airport), as against an estimated profit of ₹153 crore had it been operated by the AAI itself.
However, the AAI could earn only 91.12 crore during the 2022-23. The profitability of the AAl should have crossed the estimated figure of ₹179 crore for 2020-21 as it was expected to increase year after year since the PPF is indexed to the Consumer Price Index (CPI).
The airport handled a total of 4.5 million passengers during the pre-pandemic period. On the other hand, the airport could clock only 3.4 million in the last fiscal, a shortfall of over one million passengers.
Expansion plans
According to sources at the airport, the revenue of airport operator and AAI will increase in the coming years in proportion to the growth of passenger volume through the airport. The airport operator desperately needs 36 acres for its terminals, including cargo and runway expansion works, for which it has prepared an ambitious master plan.
However, the State has yet to take a final call on providing the land required for the expansion of the airport. The airport operator cannot acquire this much land on its own.
AAI has awarded the airport to Adani Group for a period of 50 years on the basis of PPF payable to AAI by the concessionaire, which in return paid an upfront fee of ₹476.15 crore to the AAI for its asset and investment in Thiruvananthapuram airport in the beginning.
