New Delhi, Sept 21: Opposing government's move to privatise airports, the Airports Authority Officers' Association (AAOA) today said AAI had enough funds for modernization and upgradation of airports. "A look at the financial health of Airports Authority of India (AAI) shall reveal that it is quite satisfactory and is able to meet the expenditure for development of Mumbai and Delhi Airports," General Secretary, AAOA, Y P Gautam told reporters here.

AAI has reserves of around Rs 2,300 crore and cash surplus of Rs 1,000 crore, Gautam said adding this should be enough for modernising both airports as work would be done in a phased manner, between three and five years, during which AAI's profits would increase at rate of Rs 300 crore per year. Gautam further said AAI's revenue has doubled from Rs 1,100 crore to Rs 2,250 crore in the last five years and it has been making a profit of around 60 crores every year.

This, he said, was despite the fact that Air India, Indian Airlines and other private airlines owed over Rs 1,000 crore to AAI.

Of the 124 airports managed by AAI, only 10 were profit making while 72 incurred losses and 42 operated due to "social compulsions" generating no revenue. Gautam said AAI had the necessary expertise as it was rendering consultancy services to Yemen, Maldives and other countries. He expressed concern on the security issue and modernization of smaller airports.

Gautam said AAI was yet to receive a nod from civil aviation ministry regarding the Rs 850 crore masterplan submitted six years ago for modernising Delhi Airport.

Bureau Report