Thursday, April 20, 2017

4 key private airports need Rs 27,000 crore to expand capacity: Crisil

Mumbai: Four major private airports in the country will require an investment of Rs 27,000 crore in expanding the existing capacity, which has reached near optimum level, by 2021, a report said today.

The four private airports -- New Delhi, Mumbai, Hyderabad and Bengaluru -- cater to nearly 55 per cent of the country's total air traffic.

These airports are operating at near-full capacity and will need to spend heavily on expansion through 2021, said the report by ratings firm Crisil.

"Because of surging footfalls and high capacity utilisation of over 90 per cent, we estimate the four airports would need to invest Rs 27,000 crore for expansion," Crisil Ratings President Gurpreet Chhatwal said.

Yet, their credit quality will remain healthy because of business model strength backed by robust traffic growth and predictable cash flows under a regulated tariff framework, the rating outfit said.

According to the firm, air passenger traffic in the country grew 20 per cent in the last fiscal which was a big leap over the sedate 9 per cent average seen since 2011.

Bengaluru and Hyderabad airports have clocked even faster growth of over 24 per cent, the report said, adding rising private consumption and healthy economic growth would continue to provide tailwind to traffic growth at airports.
19/04/17 PTI/Economic Times
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