New policy regime for greenfield airports in the offing

The authority is also expected to hammer out a solution on the vexed issue of whether to stick to its ‘single till’ principle for determining airport charges,a move opposed by private airport developers who have instead favoured the ‘double or dual till’ system. Under the single till system,revenues from airport activities,both aeronautical and commercial,are taken into consideration to determine the level of airport charges. By contrast,only aeronautical activities are taken into consideration under the dual till principle.

Citing the advantages of the dual till system,Mumbai International Airport Limited (MIAL) managing director GV Sanjay Reddy said,“This approach ensures incentives for non-aeronautical revenue,is cost effective and leads to improvement in service quality. Otherwise,the operators may be tempted to gold plate the investments as single till would ensure more return to them on a cost plus basis.”