Major changes ahead for Indian air traffic control amid plans to separate ATC functions

After many years of deliberations, India appears to be moving ahead with plans to separate the air navigation services activity of the Airports Aurthority of India (AAI), the state-owned airport operator. "The Government is contemplating delinking of air traffic control operations from airport operations of the AAI," said Mr Vayalar Ravi, Minister of Civil Aviation, adding a decision in this regard would be taken soon.

Mr Ravi previously stated the air traffic control services would operate as a fully-owned subsidiary of the AAI and not split off into a separate commercial entity. The new subsidiary would be named the Air Navigation Services Corporation of India, according to reports from Aug-2011. Air traffic control operations account for nearly 60% of AAI revenue with AAI previously estimating that spinning-off its air traffic control functions into a separate entity could cut its revenue by up to INR20 billion (USD454 million) p/a and jeopardise its status under government investment rules controlling state-owned firms.