GVK, GMR seek exclusive tariff structure for airports

Mumbai: GVK Power & Infrastructure and GMR Industries, majority stakeholders in Mumbai and Delhi airports, are seeking an exclusive tariff structure for these airports, unlike others, to avoid disruption to their investment plans.
Any uniform tariff policy for airports across the country will hurt the expansion of these two busy airports as investments and revenue projections are based on existing tariff structures, officials in these companies said on condition of anonymity.
The Airport Economic Regulatory Authority, or AERA, is working to arrive at a tariff structure for more than 125 airports across the country, following disputes between aviation companies and private airports. Now, the tariffs are fixed by companies that own the airports and by the Airport Authority of India (AAI) for those owned by the government.
Aviation companies have said that private airports are overcharging, increasing the cost for passengers and inflicting losses on them. But airports feel that they need funds for expansion.
“We will have to keep in mind and take into consideration OMDA agreements signed with both Delhi and Mumbai airports,” Yashwant Bhave, chairman, at AERA, told ET. “Those covenants cannot be changed and we have to respect them. The final decision on whether these airports will have separate tariffs or not will only be made known after the process is over by April end.”
24/03/10 Manisha Singhal/Economic Times

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Categories: Airports Mar 2010