The union cabinet has given its ex-post facto approval for signing a memorandum of understanding (MoU) which was signed in November, 2015 between Airports Authority of India (AAI) and Singapore Cooperation Enterprise (SCE) in civil aviation during PM’s visit to Singapore, according to a PIB release.
The objective of this MoU is to establish mutual co-operation in the field of civil aviation, which will cover the airports of Jaipur and Ahmedabad initially. This co-operation will be extended to other airports with mutual consent.
Provisions of the MoU include collaboration in areas such master planning and design, traffic development, commercial development, service quality improvement, training and development, cargo handling and management, maintenance, repair and overhaul and operation and management.
AAI may enter into operation and maintenance (O&M) contracts, either with or without the responsibility of maximisation of non-aeronautical revenue in the terminal building, excluding land on city side and air side. The city side and air side will continue to be managed solely by AAI.
AAI has no previous experience in awarding O&M contract model of terminal buildings to other entities. In order to implement the decision, it was considered necessary to ensure that a suitable entity be engaged for undertaking the O&M contract at Ahmedabad and Jaipur airports.
