GMR Hyderabad unlikely to breakeven until 2020

Hyderabad: The GMR Hyderabad International Airport Ltd., (GHIAL), developers of the Rajiv Gandhi International Airport (RGIA) near Shamshabad, said it is unlikely to breakeven until 2020. Several factors such as the economic slump, bleak passenger traffic and delay in Central Government’s approval to increase the User Development Fee (UDF), which is one of the revenue sources for airport developers, may make it tough for GHIAL, to breakeven by 2014 as indicated earlier.
“If there was no slowdown, we would have touched nine million passengers this year.
But due to market conditions, the airport handled only 6.4 million passengers last year.
We expect the growth to be flat this year too,” said P Sripathy, CEO, GHIAL adding “that doesn’t mean we will be sitting there for the conditions to change. We will do our bit to improve revenues.” Last year, GHIAL has approached the Airport Economic Regulatory Authority to allow it to increase the UDF on both outbound domestic and international passengers. It currentlly charges UDF of Rs 1,000 from international passengers and Rs 375 from domestic passengers.
Altnerately, it is also trying to improve non-aero revenues including revenue from cargo operations and advertising inside the airport to 40 per cent. The airport handled 5,500 tons of cargo in October, 2009, 700 tons more than that of September.
13/11/09 Express Buzz

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Categories: Airports Nov 2009