During the Indian Prime Minister’s visit to Singapore in November 2015, three (3) Memorandums of Understanding (MoU) were signed between India and Singapore. The MoU covered cooperation between the two countries in the fields of civil aviation, capacity building as well consulting and advisory services in urban sector projects.
On January 6th 2016, The Indian Government accorded ex-post facto approval for the MoU that was signed with Singapore in the field of civil aviation. The MoU was executed between the Airport Authority of India (AAI) and the Singapore Cooperation Enterprise (SCE).
Objective of the MoU
The basic premise of the MoU is to establish mutual cooperation in the field of civil aviation, which will commence, initially with the airports at Jaipur and Ahmedabad, and may be extended to other airports in India, with mutual consent between the countries.
Salient Features of the MoU
The salient features of the MoU include collaboration in the field of civil aviation in the areas of:
- Master-planning and design;
- Traffic development;
- Commercial development;
- Service quality improvement;
- Training and development;
- Cargo handling and Management;
- Maintenance, repair and overhaul (MRO);
- Operation and management (O&M); and
- any other areas with mutual consent.
It was felt by the AAI that in order to ensure high standards of service at Jaipur and Ahmedabad airports, it might have to enter into O&M contracts, either with or without the responsibility of maximization of non-aeronautical revenue in the terminal building.
Globally, limited O&M contract models are prevalent for entire airport operations. However, AAI has had no prior experience in awarding O&M contracts of terminal buildings to other entities. Thus, in order to implement the decision, it was necessary to ensure that a suitable entity be engaged for undertaking the O&M contract at Ahmedabad and Jaipur airports. Since the Government of Singapore owns one of the best managed airports in the world, AAI felt that it would benefit from the in-depth knowledge and experience of its APAC member nation by entering into such an arrangement.