GMR sees big delay in airport breakeven

Hyderabad: GMR Hyderabad International Airport Ltd, which operates the Rajiv Gandhi International Airport at Hyderabad, is expected take more time to break even than expected.
The airport, which was built with an outlay of Rs 2,500 crore, was expected to break even in 2014.
However, with the growth in passenger traffic not meeting the expectations, the break even is likely to get extended beyond the schedule.
"The traffic growth is currently at about 4% in July. It is likely remain in single digits and mostly in 4-5% range for some more time. This would take the break even target beyond 2014 by several years," the airport's chief executive officer P Sripathy said.
Traffic dropped 13.5% in the first quarter.
GMR Hyderabad International Airport is jointly promoted by GMR Infrastructure Ltd, Malaysia Airports Holdings, Airports Authority of India and the Andhra Pradesh government.
However, the airport company is pinning its hopes on increase in the non-aero revenues or revenues from cargo to keep the momentum going.
Currently, the airport gets about 56% of its revenue from passenger traffic and 44% from cargo.
14/08/09 K V Ramana/Daily News & Analysis

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Categories: Airports Aug 2009