 "Cabinet approves AAI's proposed Changi tie-up")
The Union Cabinet has given the approval to the proposed tie-up between the Airport Authority of India (AAI) and Singapore’s Changi airport to operate and manage Ahmedabad and Jaipur airports.
AAI and Singapore Co-operation Enterprise had signed a memorandum of understanding (MoU) during Prime Minister Narendra Modi's visit to the island state. The agreement aims to further co-operation in civil aviation and covers six areas, including operations and management of the two airports. On Wednesday, the Cabinet gave post facto approval to the agreement.
A formal agreement with the Changi airport has not been negotiated yet.
“A need was felt that in order to ensure high standards of service at Ahmedabad and Jaipur airports, AAI may enter into operation and maintenance (O&M) contracts, either with or without the responsibility of maximisation of non-aeronautical revenue in the terminal building (excluding land on city side and air side). The city side and airside will continue to be managed directly by AAI,” said Press Information Bureau in a statement following the Cabinet meeting.
“Globally, limited O&M contract models are prevalent for the entire airport operations. AAI has no previous experience in awarding O&M contract model of terminal buildings to other entities. In order to implement the decision, it was necessary to ensure that a suitable entity be engaged for undertaking the O&M contract at Ahmedabad and Jaipur airports,” the statement added.
Following the MoU, the two sides will collaborate in areas such as master planning and design, traffic development, commercial development, service quality improvement, training and development, cargo handling and management, maintenance, repair and overhaul and operation and management.
