Sop for GMR to offset losses due to Greater Noida airport

New Delhi: To Compensate GMR Group-led Delhi International Airport (DIAL) for possible revenue loss due to the proposed Greater Noida airport, the government may rejig the revenue-sharing arrangement with the consortium.
Hyderabad-based GMR has expressed concern over the Uttar Pradesh government’s plan to build second airport in Greater Noida, arguing that competition would cause significant revenue loss to DIAL. The proposed airport is located 70 kms from the Delhi airport and GMR says the new facility will take away some of DIAL’s business.
business.
“Right of first refusal given to DIAL for the second airport within a radius of 150 kms is in itself a concession. But in case of excessive revenue loss due to the coming up of second airport in Greater Noida, we may relax the existing revenue-sharing arrangement,” a government official said. “However, second airport or even third airport is inevitable. We are looking at convenience of public and not the convenience of airport operators.”
17/12/07 Nirbhay Kumar/Economic Times

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Categories: Airports Dec 2007, New Dec 2007