Cen­tre nods air­lines to in­vest in Navi Mum­bai air­port

Accommodation Times - - Real Estate Investments -

The civil avi­a­tion min­istry has al­lowed Navi Mum­bai air­port be­ing built through a Public- Pri­vate- Part­ner­ship (PPP) to rise up to 26% of its eq­uity from the air­lines. Air­lines are cur­rently al­lowed to in­vest up to 10% of the eq­uity of PPP air­ports up from 5% few years back. Mum­bai’s sec­ond air­port in Navi Mum­bai be­ing built by City and In­dus­trial Devel­op­ment Corp. of Ma­ha­rash­tra Ltd (Cidco) sought clear­ances from avi­a­tion min­istry to al­low this to be raised to 26%. “Air­lines can in­vest but they will not be given any board seat,” said a gov­ern­ment of­fi­cial who asked not to be iden­ti­fied.

The of­fi­cial said this was be­ing done to en­sure the in­vest- ing air­lines don’t get “un­due ben­e­fits”. A 26% stake (enough to make or block de­ci­sions) and a board seat could al­low air­lines to dom­i­nate de­ci­sions at the air­port. The fear is that th­ese could be detri­men­tal to other air­lines us­ing the air­port. Air­lines com­pete for bet­ter slots and other fa­cil­i­ties at air­ports.

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