GMRI : Home user fee grounded

Mumbai: GMR Infrastructure's take-off from the Hyderabad airport isn't going to be as profitable as it had planned.
The holding company, which will run the Delhi and Hyderabad airports, has decided not to charge domestic passengers a user development fee at the Hyderabad airport; the Rs 1,697 crore firm had been hoping to collect a stiff user fee of between Rs 600-700 from domestic travellers.
International passengers, however, will have to cough up $25. Moreover, GMRI is understood to have refrained from upping the landing and parking charges for aircraft.
As a result, the net asset value for the Hyderabad airport could be lower by about 25 per cent, estimate analysts, some of whom had pencilled in a charge of Rs 725 per passenger from 50 per cent of domestic passengers travelling on full service airlines.
With the charges for landing and parking charges not to be applied for the present, analysts have also shaved off about 5 per cent from the sum-of –the –parts valuation for the stock for FY09; many of them had factored in a 12-14 per cent increase.
As such, the company is now being valued at between Rs180-190.
07/03/08 Shobhana Subramanian/Business Standard

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Categories: Airports Mar 2008, New Mar 2008