Now, rising oil worries airport developers

New Delhi: Rising oil prices are creating pain for airport developers too. Faced with a slowdown in the domestic aviation industry, both the Airports Authority of India and private players are now fearing lower revenues and seeking ways to cut costs, after investing huge amounts on infrastructure improvements.
Unlike airlines that are cutting flights and grounding or leasing planes to foreign airlines to cut costs, airport operators can't do something like this. "We are building airports for a certain capacity. If that remains underutilised, we can't send our unused runway or terminal to some other place where they can be utilised like the excess fleet of airlines,'' said an airport developer. This worry stems from the fact that many airlines' survival faces a question mark at a time when huge infrastructure is being added across the country.
The amount at stake can be gauged from combined figure of public and private in airport sector - Rs 41,000 crore - is expected to be invested over next five years. While civil aviation minister Praful Patel had said there will be no slowdown in infrastructure development, the same will now have to funded with declining revenues.
07/07/08 Saurabh Sinha/Times of India

To Read the News in full at Source, Click the Headline

Categories: Airports Jul 2008