GVK to take pilot's seat at B'lore airport

Mumbai: GVK Power and Infrastructure is likely to take management control of Bangalore International Airport, or BIAL, on Friday, making the Hyderabad-based group the biggest private player in India’s aviation sector with control of two major airports. GVK vice-chairman Sanjay Reddy will be appointed managing director at a board meeting on Friday while his father, GVK Krishna Reddy, will take over as vice-chairman of BIAL, said persons familiar with the matter.
The GVK Group, which runs airports and power plants, already has three members on the BIAL board. The chairman’s position is vacant after NR Narayana Murthy, the chief mentor of Infosys, stepped down last year.
The current management of BIAL and the existing CEO, Marcel Hungerbuehler, will stay on for now. But Mr Hungerbuehler will report to Sanjay Reddy, sources said.
The GVK Group holds 29% stake in BIAL after it bought shares from investors like Zurich Airport and engineering major L&T for over Rs 1,000 crore last year. Siemens, the engineering major which built the airport along with L&T, holds 40% stake but plays no role in management. The Karnataka government and the Airports Authority of India together hold 26% while Zurich Airport still has 5%.
Zurich Airport is the strategic partner of GVK in its Indian airport business. Before the advent of GVK, it had management control of BIAL and the CEO, Mr Hungerbuehler, is its nominee.
09/04/10 Manisha Singhal/Economic Times

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

Categories: Airports Apr 2010