Modernised facility will also fetch AAI higher royalty

After renovation, the Kolkata airport is likely to become one of the most expensive in the country.

The airport, managed by the Airports Authority of India (AAI), will, however, be less expensive than the privately-managed Bangalore international airport.

In terms of rentals or licence fees that are paid by private airlines for booking space, the Kolkata airport (also called the NSC Bose International Airport) is likely to charge nearly Rs 1,250 per sq metre a month. The Bangalore airport charges Rs 1,334 per sq metre.

The rentals also include fees for back office space, check-in spaces inside the terminals and ticket counters.

B.P. Sharma, regional airport director, Kolkata, said there would be a “routine increase” in rentals at the Kolkata airport.

Increased Royalty

Carriers and other users will have to pay nearly 32.5 per cent of what they earn as royalty at the modernised terminal of Kolkata airport beginning September.

At the old terminal, they used to pay 13.5 per cent of their revenues as royalty to the AAI. According to an Airlines Operating Committee official, private carriers would be over-burdened with such a steep hike in royalty.

Other Metros

Rentals for office space at Kolkata airport will be at par with the recently refurbished Chennai Airport (also maintained by the AAI).

In comparison, both Delhi and Mumbai airports have substantially lower rates.

Market sources maintain that in Delhi (Indira Gandhi International Airport), maintained and operated by GMR, rentals are charged at approximately Rs 1,130 per sq metre a month – or nearly 10 per cent lower than the proposed rates in Kolkata.

Another GMR-maintained airport, the Hyderabad International Airport (Rajiv Gandhi International Airport) has a licence fee of nearly Rs 950 per sq metre (24 per cent less than Kolkata) and a flat Rs 67,000 per month as charges for maintenance of the airport's common area.

Similarly, according to sources, at the Mumbai airport (Chhatrapati Shivaji International Aiport) monthly rates are pegged at Rs 1,042 per sq metre or approximately 17 per cent lower than Kolkata.

Mumbai airport, however, charges a monthly rental of Rs 2,550 per sq metre for a space provided at the international terminal.

GMR and GVK both declined to comment on the matter.




(This article was published in the Business Line print edition dated August 20, 2012)
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