Lack of plan to monetise real estate to bring down asset value of AAI

New Delhi: Lack of proper business plan to monetise its real estate is expected to bring down the asset value of state-owned Airports Authority of India (AAI). The local arm of global consulting and accounting firm KPMG has estimated the asset of the airport operator in the range of Rs 20,000 to Rs 30,000 crore, nearly one-third of the value claimed by AAI ahead of its listing on the stock exchanges.
“The consultant has estimated the total asset value of AAI at around Rs 20,000-30,000 crore. We had expected the value to be much more than this. Since the airport operator has not presented a solid plan to commercially utilise its huge land bank, the valuation is on the lower side,” an official in the civil aviation ministry told FE.
AAI currently possesses a total land bank of about 45,000 acre across various airports in the country. It has an equity base of Rs 623 crore as on April, 2010. The country's largest airport operator manages 128 airport in the country, which include 14 international airports, 25 civil enclaves and 8 customs and 81 domestic airports.
07/09/10 Nirbhay Kumar/Financial Express

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Categories: airports Sep 2010