Sharjah Airport Authority keen to handle Indian facilities
Monday, 16 December 2002, 20:30 IST
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NEW DELHI: The Sharjah Airport Authority is awaiting details of the Indian government's airport privatisation programme before finalising plans to put in a bid. New Delhi plans to privatise at least four airports by the end of next year in a bid to bring them up to international standards. Frequent changes in policies and requirements of airports makes it necessary for India to have a transparent policy on privatisation, said Ghanem Al Hajri, director general of the Department of Civil Aviation and Sharjah Airport Authority. "It is a very complex issue. The position of the Indian government on what they want to do and what services they want to hand over (to private investors) will determine the number of interested parties that will come in," Al Hajri told IANS. Al Hajri was here to attend a two-day international conference organised by the Associated Chambers of Commerce and Industry of India (Assocham) and the Middle East Aviation Journal that concluded Sunday. On Sharjah Airport Authority's interest in handling facilities in India, Al Hajri said, "It is going to be an international group of companies and people that will eventually form a consortium of bankers, businessmen and airport experts." The profile and size of the consortium will depend on the requirement of the projects. "We will be able to design the consortium when we know all the factors or the requirements by the Indian authorities," said Al Hajri. As chairman of Airports Council International (ACI), Al Hajri said he enjoyed a good business relationship with the Airport Authority of India (AAI). Some 1,600 airports worldwide are represented in ACI. ACI has been encouraging privatisation, liberal policies and competition among airports in terms of facilities and services to airlines and passengers. It regularly organises conferences to advocate and train airport staff in better management of facilities. "We feel airport privatisation will enhance productivity within the region, improve economic conditions in the surrounding areas and generate wealth and employment. "Privatisation can be the best multiplier of economic benefits an airport can generate in a country. It would lead to ten-fold benefits," he said. The benefits that will accrue will depend largely on government policies on the length of contract, attracting more investment in infrastructure, promotion of duty-free facilities and other aspects, felt the Sharjah official. The policy on ground handling, catering and cargo handling are major aspects that would have bear in determining investors' decisions. In India's case, Al Hajri said the limited information on privatisation is not enough to attract serious bidders. "We are already in association with some businessmen in India and have bid for ground handling in five major airports. Unfortunately it is taking a long time to finalise this," he said. He declined to give any further details. Sharjah International Airport has emerged as a major cargo transit hub in the Middle East with many airlines including Indian Airlines utilising its facilities to operate 18 flights a week to 13 destinations in India. One of the six airports in the United Arab Emirates, Sharjah Airport is also looking keenly at an opening in Frankfurt, where plans are afoot for privatising its airport there. "We are also working closely with Frankfurt Airport and are looking forward to opportunity ahead with its plans for privatisation and taking our expertise there and later bringing it to India." The civil aviation ministry Friday forwarded its proposals for privatisation of some major airports to the cabinet committee on security and expects to invite expression of interest next month. "The key issue for operating an airport is the ability to use the facility efficiently in terms of allowing a large number of airlines to operate. "In the current scenario where not everybody is allowed to land in India, it is going to be difficult task for the operator to generate enough revenue and invest in infrastructure," said Al Hajri.
Source: IANS
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