Privatization of Delhi & Mumbai Airports - A Bumpy Take Off
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Case Details:
Case Code : ECON016
Case Length : 21 Pages
Period : 2003-06
Pub Date : 2006
Teaching Note : Available
Organization : Airport Authority of India, Ministry of Civil Aviation
Industry : Civil Aviation
Countries : India
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Introduction
Additionally, the process was opposed by the Airports
Authority Joint Employees Forum6 (AAJEF).
To protest against airport privatization, they went on a strike which
lasted four days from February 1, 2006.
The Left parties7 did not support the GoI on the issue and joined hands
with the AAJEF. To make matters worse, Reliance chose to take legal
action against the government. All these events have dimmed the
prospects of privatization of the Mumbai and Delhi airports. |
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Brief History of the Aviation Industry in India
As of 2006, India had a total of 11 international airports, 89 domestic airports
and 26 civil enclaves at defense airfields. India also had four international
cargo terminals at Delhi, Chennai, Kolkata, and Mumbai which, together, were
capable of handling one million tons of import/export/transit cargo annually.
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All of these were being managed by the Airports
Authority of India (AAI). AAI was formed after the GoI merged the
International Airports Authority of India (IAAI)8
and the National Airports Authority (NAA)9
on April 01, 1995.
All of India's airspace (excluding the special user airspace10)
extending further than the territorial limits of the country, as
acknowledged by International Civil Aviation Organization (ICAO),11
was controlled and managed by AAI. AAI provided Air Traffic Management
Services over Indian air space and adjoining oceanic areas to assure the
safety and security of all aircraft operations. |
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