Bengaluru: The Bengaluru International Airport (BIAL) posted a net profit of ?848 crore in the financial year 2017-18, a 33% jump from the previous year. The sharp increase comes on the back of ridership growth, a spike in rental income and higher revenue collections from user development fee (UDF).
The 2017-18 annual report, uploaded on its website, shows the Fairfaxbacked Kempegowda International Airport (KIA) reported a total revenue of Rs 1,551.7 crore, an increase of 15% over the previous year.
The spike in revenue from UDF, charged on passengers for the development of the airport, is one of the reasons for the increase in net profit. Total UDF collection went up from Rs 495.9 crore in 2016-17 to Rs 571.5 crore in 2017-18. Though the UDF tariff remained the same in both the financial years, the increase of Rs 75 crore in the fee collected has been attributed to the rise in ridership.
Even the income from rentals shot up in 2017-18. BIAL earned Rs 74 crore more than it did in 2016-17 from retail spaces, building rentals, parking fees, etc. In total, the non-aeronautical revenue came up to Rs 578.9 crore, up from Rs 502.8 crore in 2016-17. There was, however, not much of a difference between 2016-17 and 2017-18 in revenue earned from other sources. This includes income earned from charging landing fees and aircraft parking fees.“The Kempegowda International Airport, Bengaluru, is a regulated entity and the aeronautical tariff is determined by the Airport Economic Regulatory Authority (AERA). Since the tariff is determined for a five-year control period, any higher/lower revenue earned in a particular year is trued-up during the remaining years in the period or the subsequent control period,” the BIAL spokesperson said.
11/12/18 Naveen Menezes/Economic Times
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The 2017-18 annual report, uploaded on its website, shows the Fairfaxbacked Kempegowda International Airport (KIA) reported a total revenue of Rs 1,551.7 crore, an increase of 15% over the previous year.
The spike in revenue from UDF, charged on passengers for the development of the airport, is one of the reasons for the increase in net profit. Total UDF collection went up from Rs 495.9 crore in 2016-17 to Rs 571.5 crore in 2017-18. Though the UDF tariff remained the same in both the financial years, the increase of Rs 75 crore in the fee collected has been attributed to the rise in ridership.
Even the income from rentals shot up in 2017-18. BIAL earned Rs 74 crore more than it did in 2016-17 from retail spaces, building rentals, parking fees, etc. In total, the non-aeronautical revenue came up to Rs 578.9 crore, up from Rs 502.8 crore in 2016-17. There was, however, not much of a difference between 2016-17 and 2017-18 in revenue earned from other sources. This includes income earned from charging landing fees and aircraft parking fees.“The Kempegowda International Airport, Bengaluru, is a regulated entity and the aeronautical tariff is determined by the Airport Economic Regulatory Authority (AERA). Since the tariff is determined for a five-year control period, any higher/lower revenue earned in a particular year is trued-up during the remaining years in the period or the subsequent control period,” the BIAL spokesperson said.
11/12/18 Naveen Menezes/Economic Times
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