• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Ashwini Phadnis

New Delhi, Nov 22 The transfer of the airports at Delhi and Mumbai to the new joint venture companies has seen a decline in revenues of Airports Authority of India (AAI). The latest figures show that during 2006-07, AAI earned Rs 400.82 crore including Rs 271.98 crore as revenue share from Delhi International Airport Ltd (DIAL), the new joint venture company set up to modernise the airport.

Similarly, from Mumbai airport, AAI earned Rs 357.33 crore including Rs 228.29 crore as revenue share from Mumbai International Airport Ltd (MIAL).

In comparison during 2005-06, when both the airports were solely with AAI, it had earned a revenue of Rs 669.94 crore from Delhi with Mumbai providing revenue of Rs 665.48 crore. During 2004-05 the revenues from Delhi were at Rs 489.32 crore while revenues from Mumbai were at Rs 488. 51 crore. Delhi and Mumbai are the two busiest airports in the country.

The airports, which are the busiest in the country, were transferred to two new joint venture companies set up to run them in May 2006 after the Government chose a consortium run by the GMR group to modernise Delhi airport and a GVK group consortium to modernise Mumbai airports. The operations, maintenance, development agreement (OMDA) stipulates that the GMR consortium provides 45.99 per cent of the revenue share to AAI while GVK has to provide 38.7 per cent.

Official sources, however, felt that a comparison between revenues earned during 2005-06 and the following year were not really comparable.

“It would be unfair to compare a 11-month period of 2006-07 with a full year revenues of the previous years. Besides, the real benefits of the modernisation programme for the two airports would accrue to AAI after about 18 months when the various contracts including the advertising and duty-free contracts among others are reworked and works being planned including construction of a new runway are completed.

“Besides from now AAI would not have to undertake any capital expenditure at Delhi and Mumbai which allows us to concentrate on developing other airports,” a senior Government official said.

Interestingly, DIAL is also looking at cutting back on the capital expenditure that it would have to undertake at Delhi airport for developing hotels. DIAL plans to seek a refundable deposit from those planning to bid for hotels around the airport, as it feels it would not be in a position to take such a huge expenditure on its books.

More Stories on : Performance | Airlines

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
SriLankan offers 100 tickets for Rs 100

Copyright © 2007, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line