Hyderabad airport seeks hike in levies to turn profitable faster

New Delhi: The two-year-old GMR Hyderabad International Airport Ltd, or Ghial, has sought regulatory approval for a steep hike in the charges it levies on passengers and airlines to help it turn profitable faster.
The Airports Economic Regulatory Authority, or AERA, suggested a smaller hike. Airlines and consumers voiced immediate concerns that more private airport operators would emulate the move, making air travel more expensive out of other cities too.
Ghial had been projected to be a loss-making entity for at least the next three years. The proposed increases in levies would earn it an additional Rs. 650 crore over the next three years and enable it to turn profitable this fiscal itself.
Built at a cost of Rs. 2,920 crore, 25km away from the main city, the airport started operations in March 2008 after the old Begumpet airport, operated by the Airports Authority of India (AAI), was shut down.
Ghial was allowed to charge Rs. 340 each from departing domestic passengers and Rs. 907 from international passengers (excluding taxes) as a user development fee, or UDF, soon after it became operational.
27/09/10 Tarun Shukla/Live Mint

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Categories: airports Sep 2010