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Nimish
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Joined: 16 Dec 2006
Posts: 9757
Location: Bangalore, India
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 Posted: Mon Aug 01, 2011 4:36 am Post subject: GoI may spin off ATC from AAI |
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From: http://www.livemint.com/2011/08/01000247/Traffic-control-unit-spinoff.html?h=A1
| Quote: | Traffic control unit spin-off to cost AAI half its revenue
Mumbai: State-run Airports Authority of India (AAI) will lose at least Rs2,000 crore, or about half its revenue, if the government goes ahead with a plan to turn the air traffic control (ATC) division into a separate unit.
The move could also scuttle AAI’s aspiration for navaratna status, which provides a state-run company a degree of financial independence. It’s currently a miniratna, which gives it the freedom to invest up to Rs500 crore without government approval. A navaratna can invest twice that amount without government permission.
ATC manages communications, navigation, surveillance and traffic management for aircraft on the ground and in the air. The government wants to spin it off to upgrade and benchmark services to international standards. The civil aviation ministry hired consulting firm KPMG India to carry out a pre-feasibility study for splitting the ATC from AAI by April 2012.
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In fiscal 2009-10, the latest figures available, AAI reported a net profit of Rs712.29 crore on Rs4,615.29 crore revenue. Almost half of this revenue, Rs2,125.84 crore, came from air traffic management services. |
Considering how the miserable AAI is screwing the ATC wing with no hiring/ upgrades etc, it's about time that the ATC got seperated, and that will hopefully allow them to grow on their own might. We really need a professional and fully staffed ATC. No more "ATC delays" needed...
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ameya
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Joined: 09 May 2007
Posts: 3671
Location: Pune,Maharashtra
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| Posted: Mon Aug 01, 2011 4:19 pm Post subject: |
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Might as well handover ATC to private players - say tell them you handle it from 1st Jan 2013. Start training people now.
And then the remaining would be right for the AAI controlled airports. |
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Nimish
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Joined: 16 Dec 2006
Posts: 9757
Location: Bangalore, India
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| Posted: Mon Aug 01, 2011 10:21 pm Post subject: |
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I disagree in principle with handing over the ATC to private players - esp. given it's the most money making thing the GoI probably does... However our ATC services should be massively ramped up and the "quality" improved - anyone remember that thread about the piss-poor ATC coverage ex-India on HF?
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Nimish
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Joined: 16 Dec 2006
Posts: 9757
Location: Bangalore, India
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| Posted: Fri Aug 05, 2011 9:34 am Post subject: |
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From: http://www.business-standard.com/india/news/air-navigation-service-to-benew-firmapr/444899/
| Quote: | Air navigation service to be a new firm from Apr
Air traffic control (ATC) operations will start functioning as a new entity from April next year. As of now, the air navigation service comes under the Airports Authority of India (AAI), the state-owned airport operator.
In the US and Europe, ATCs operate as separate company. “The new company will be called Air Navigation Services Corporation of India. But a decision is yet to be taken on whether it will function as a separate company or AAI’s subsidiary,” said a senior AAI official, who did not want to be identified.
AAI would like the company to operate as a subsidiary in order to make sure that the revenue does not go out of its kitty. ATC operations account for over 60 per cent of AAI revenues. The rest of the revenue comes from operating 87 airports across the country.
AAI earned Rs 4,186 crore and made a profit of Rs 687 crore in 2008-09.
Revenues coming from ATC operations include charges for route navigation facilities, terminal navigation and instrument landing, among others. Also, every time an international flight uses India’s airspace, it pays a fee for ATC services.
The process for hiving off the company started over a year back with the creation of a post called member (air navigation service provider) on AAI’s board to monitor the functioning of ATC. Prior to this, the job was looked after by member (operations).
“The assets will be transferred to the new entity. The assets will include the equipment being used for guidance. The buildings which will have the ATC offices will remain ours and we will get rent from them,” said the AAI official.
With the aviation industry currently growing at a rate of around 20 per cent and airlines planning to add huge capacity, revamping of ATC was required. Another key requirement was in the area of staff hiring, where there is a big shortage.
There are 1,800 ATC officers across the country, far below the requirement. It is one reason for increasing incidents of near-collisions in the air. The current strength needs to be augmented by an additional 400 officers. The government has been hiring retired ATC officers, from civil and military sides, to bridge the gap. |
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