Nip in the air

The specific objections leveled against the modernisation of these airports under private ownership are untenable. Contrary to the CPM complaints, the AAI is likely to generate more revenue through privatisation than it does through existing financial arrangements. The slow rate of modernisation of these airports entails a significant loss to AAI anyway, because the growth of the sector as a whole is stymied. The privatisation plan will not immediately address all the needs of the aviation sector. But it defies logic to suppose that because privatisation of these two airports alone may not achieve every single goal, the gains that privatisation could bring should be rejected. As for the issue of AAI employees, their interests can be taken into account in the course of the privatisation process.

The suggestion made from some quarters that private investment should be allowed only in new airports, not existing ones, is also untenable. For the foreseeable future the existing airports in Mumbai and Delhi are going to remain the backbone of the aviation sector. These airports need to improve their performance quickly. Some of our political parties have a propensity to find any excuse to block measures that make eminent practical sense. But the sad truth is that this obstructionist attitude helps no one. Deregulation of the airline sector made flying accessible to the middle and lower middle classes. By obstructing airport modernisation, we are only ensuring that the gains of the aviation sector8217;s growth remain confined to the few.