For any new entrepreneur to start as an Airport Operator business in INDIA, one has to keep the following factors in mind.
These can also be classified as risks or issues depending on the nature of his risk taking capacity.
Have listed the same under various categories.
Financial Arrangements:1. Obtain on-time and adequate Budgetary support from Government of India (GOI) for Airport development.
2. Obtain on time and adequate Financial Resource Mobilisation from primary market like banks/consortium of banks.
3. Agreement with GOI on the revenue model.
4. Tariff Fixation/negotiation with GOI.
5. Net asset value of the present company.
1. Obtain the Classification and Licensing as an International airport status to allow international flight operations, particularly from foreign airline companies.
2. Time delay in obtaining international airport status can become a costly proposition for the airport in attracting the foreign airline companies.
Regulatory Risk:
1. Obtain the Classification and Licensing as an International airport status to allow international flight operations, particularly from foreign airline companies.
2. Time delay in obtaining international airport status can become a costly proposition for the airport in attracting the foreign airline companies.
3. One partner should have the international Airport Operator license.
1. Mature Stakeholder Management involving the involvement of all users including state and central Govt.
All the above information is basis my personal experience in aviation.
Stakeholder Management:
1. Mature Stakeholder Management involving the involvement of all users including state and central Govt.
2. Delay in obtaining the approvals from the various govt depts.
1. Having a definite & transparent central & state policy on private participation in airport infrastructure.
2. Having a clear policy on the process of project financial structuring.
3. Land acquisition policies of state and Centre along with the land compensation policy, Rehabilitation and Resettlement policy.
1. Resource mobilization, Skill set availability.
2. Absence of experience in dealing with various regulatory bodies like AERA, MOCA, DGCA, BCAS.
3. labour union relations.
1. Political stability at the center govt. and the state govt.
2. Political relationships between the center govt. and the state govt.
3. Local Political Activism.
1. Lack of coordination among various agencies.
2. Non recovery of Revenues – Aeronautical and non Aeronautical services offered at airport.
3. Being OMDA compliance and also ensuring Operational Cost efficient to handle Cargo, Charter flights, Aircraft parking, Refueling of long distance flights, Night landing facilities and 24-hour ATC services.
Infrastructure Policies:
1. Having a definite & transparent central & state policy on private participation in airport infrastructure.
2. Having a clear policy on the process of project financial structuring.
3. Land acquisition policies of state and Centre along with the land compensation policy, Rehabilitation and Resettlement policy.
Human Resources:
1. Resource mobilization, Skill set availability.
2. Absence of experience in dealing with various regulatory bodies like AERA, MOCA, DGCA, BCAS.
3. labour union relations.
Political:
1. Political stability at the center govt. and the state govt.
2. Political relationships between the center govt. and the state govt.
3. Local Political Activism.
Operating Risks:
1. Lack of coordination among various agencies.
2. Non recovery of Revenues – Aeronautical and non Aeronautical services offered at airport.
3. Being OMDA compliance and also ensuring Operational Cost efficient to handle Cargo, Charter flights, Aircraft parking, Refueling of long distance flights, Night landing facilities and 24-hour ATC services.
4. Competitive pricing for foreign Airlines to set up operations
5. Environment clearances and Carbon footprint management
Other factors that are also important are
1. Strategic alliances with other business entities or governments which one has.
2. Major cost reductions done by the present company on their line of business.
3. Are you Known for social commitments like providing the ambulance services, Hospitals, Research units, Schools, Colleges-Institutions.
4. Having a core team to manage the Corporate relationships/affairs.
5. Having a collaborative, problem solving/management approach.
All the above information is basis my personal experience in aviation.
