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.
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