Airports high on property rentals

Bangalore: Airport developers will earn more than half their revenue by 2015 from non-aeronautical sources—primarily property rentals—if the building of new airports and modernisation of existing ones proceed at the pace envisaged by the government, a study says.
Airports currently get 35% of their revenues from non-aeronautical sources and this could rise to 54% in the next seven years, property consultancy Cushman & Wakefield (C&W) said in its study on real estate development at Indian airports.
The development of some 78 million sq ft of real estate space for the retail, commercial and hospitality sectors can be expected from the planned modernisation of 40 airports and the building of seven new ones, it said.
Airport developers will earn about 45% of their non-aeronautical revenue by letting out space for offices, retail stores and hotels and the rest from trading concessions, public admission fees, advertising and parking fees, the study said. “Globally airports derive a large portion of their income from non-aeronautical revenue sources.
19/05/08 M Rochan/Economic Times

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Categories: Airports May 2008