Centre nods airlines to invest in Navi Mumbai airport
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.