Private airport operators appeal against Aera over land valuation

New Delhi: Private airport operators have appealed against a regulatory decision that directs them to exclude the value of land while calculating tariffs, which could lower costs for passengers and carriers.
GMR Infrastructure Ltd, which runs the Hyderabad and New Delhi airports, GVK Power and Infrastructure Ltd, which runs the Mumbai and Bangalore airports, and Cochin International Airport Ltd (Cial), had filed an appeal against the Airports Economic Regulatory Authority (Aera) order that they say will reduce returns on their investments, said three officials of the operators.
“We have applied for relief. The Aera Act clearly says they have to regulate aeronautical revenue and not non-aeronautical revenue,” said a Cial official, who declined to be named as the matter is in court.
A GVK spokesman said its two airport firms Mumbai International Airport Pvt. Ltd and Bangalore International Airport Pvt. Ltd have separately appealed against the decision. A GMR official said his company, too, had appealed against the decision. He spoke on condition of anonymity.
15/02/11 Tarun Shukla/Live Mint

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Categories: Airports Feb 2011