Airports need to review pricing strategies to increase profitability: Capa

Indian airports need to review their pricing strategies and can substantially increase their profitability by garnering more non-aeronautical revenues, according to aviation consultancy firm CAPA India.

India is the world's third largest domestic civil aviation market and air traffic is on the rise. Airlines are increasing their fleet, operating more routes while airports are also expanding their capacities.

Airports operated on Public Private Partnership (PPP) mode generate more non-aero revenues compared to those operated by the Airports Authority of India (AAI), the consultancy said during a webinar on Thursday.

Just five PPP airports -- Delhi, Mumbai, Bangalore, Hyderabad and Cochin -- accounted for 71 per cent of the total non-aeronautical revenue in India in FY2020, while handling 53 per cent of the total traffic, CAPA India said.

Despite significant increases since privatisation, Indian PPP airports still have much more headroom to increase non-aero revenue to global levels,