Friday, September 18, 2020

Covid-19 impact: AAI likely to slip into red for first time in FY21

New Delhi: The Covid-19 pandemic is likely to push the Airports Authority of India (AAI) — the only profit-making government-owned aviation entity — into losses in FY21, for the first time since its formation in 1995, officials said.

The quantum of loss will depend on the extent of the effect of the pandemic on traffic flow at airports.

In February 2009, it was granted “Miniratna Category 1 PSE” status by the Centre. In FY20, the AAI clocked a profit of over Rs 3,600 crore over revenue of around Rs 14,367 crore.

To counter the pandemic, air transport was suspended from March 25 till May 24 which rendered zero traffic at AAI airports. Even after resumption of flights, traffic is yet to pick up at airports due to quarantine measures implemented by states and an overall fear of flying.

The airports authority’s revenue has been further squeezed as two private airport operators — Delhi International Airport (DIAL) and Mumbai International Airport (MIAL) — haven’t paid any fees to AAI for three months.

While DIAL has started paying from August, MIAL has moved court as it has invoked force majeure on revenue sharing for the entire year. The AAI, however, hasn’t agreed.

MIAL has moved the Delhi High Court seeking an injunction against the AAI seeking the same.

18/09/20 Arindam Majumder/Business Standard

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


Post a Comment