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Published 10 Jun, 2016 06:46am

CAA to develop airport cities to boost revenue

ISLAMABAD: The Civil Aviation Authority (CAA) has decided to develop its airports into ‘aerotropolis’ or airport cities with an objective to provide complete facilities to airport users under one roof or in the same vicinity.

The authority is finalising plans to develop airport cities at three major airports — Jinnah International Airport, Karachi; Allama Iqbal International Airport, Lahore; and Benazir Bhutto International Airport, Islamabad.

The project will be carried out by the CAA with its own resources. The initiative has been taken to boost the aviation industry and enhance its non-aeronautical revenue.

Airports have evolved as drivers of business location and urban development in the 21st century.

According to a planning commission document, the CAA generates aeronautical revenue to the tune of 70 per cent of its total income.

The aeronautical revenue is mainly generated by three major airports — Jinnah International Airport, Karachi (54pc); Allama Iqbal International Airport, Lahore (27pc); and Benazir Bhutto International Airport, Islamabad (13pc) — with the remaining locations generating 6pc.

The non-aeronautical revenue is 30pc of the total revenue of the CAA, the document says.

Published in Dawn, June 10th, 2016

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