By The Hindu Business Line
What would happen if all the international airports in the country were owned by two private players who are allowed to charge any fee from the airlines for landing? There would be two likely outcomes of this scenario. The airport owners could charge an exorbitant fee to maximise profits. Or, the airport owners may decide to drive profits by increasing traffic through low fees.
But, in both cases there are risks involved. In the first case, the high charges could force airlines to operate fewer flights in and out of India. In this case, the airport owners may not get the expected numbers. In the second outcome, the challenge will be to find the sweet spot in terms of actual demand and pricing, else the airport owner may go bankrupt giving away access to his infrastructure at throwaway charges.
