Airports boost non-aeronautical revenues: Frost

New Delhi, Sep 7 (UNI) Airports are becoming profitable business enterprises based on the increasing revenues generated by non-aeronautical commercial activities -- in particular retailing, car parking and catering.

This trend is opening up opportunities for airport management firms and other companies keen on expanding their businesses in the catchment area of airports.

Currently, due to demand from air carriers for reduction of charges and unwillingness of governments to offer subsidises, airports can no longer rely solely on aeronautical revenues to generate the resources needed for infrastructural improvements.

''Here, commercial revenues from retailers, advertisements, ground transport and property development offer a huge boost to infrastructural investments and even to directly generate profits,'' says Frost&Sullivan's research analyst Kamila Zlobinska The growing diversification of airports' revenue sources reflects their stronger integration into the economies in which they operate.

Airports have become attractive business centres and are supporting economic growth in the areas where they are located.

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