Alpha expects delays in opening airport stores in New Delhi

London: Alpha Airports Group PLC said it expects delays in opening airport stores in the Indian capital New Delhi and security issues in Sri Lanka to affect its full year results, although it is too early to assess their full impact.
Alpha, which runs airport shops and provides catering to airlines, said its joint venture with Pantaloon Retail (India) Ltd was expected to begin trading at Indira Gandhi International Airport in Delhi in January.
However, due to a number of issues including delays in receiving various regulatory approvals and trading clearances, the JV's stores were unable to open until the end of March.
The group said the delay had resulted in pre-trading costs being significantly greater than originally expected.
'Additionally, in a market where the airport experience has traditionally left a lot to be desired, the first month's footfall and trading performance were disappointing,' the statement said.
Alpha said revenues increased by 7 pct at its Alpha Airport Services unit, which runs airport shops.
23/05/07 Thomson Financial/Hemscott, UK

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Categories: Airports May 2007