Wednesday, February 16, 2011

Indira Gandhi International Airport is planning to renew User Development Fee

Flyers would have to pay more as Delhi International Airport Limited (DIAL) the company that operates the Indira Gandhi Airport is looking forward to renew the User Development Fee (UDF).

On February 16, 2011, DIAL said that it was working on to renew the UDF. A DIAL official said that GMR Group and the government discussed about the UDF.

The DIAL is a “joint venture consortium” formed by GMR Group, state-run Airport Authority of India (AAI) and Frafort AG and Eraman Malaysia. GMR Group holds the majority share of 54 percent in the consortium followed by AAI with 26 percent, and FA and EM with 10 percent each.

GMR Group is planning to renew the UDF because it reported a net loss of Rs.223 million in the third quarter of the current fiscal year. In the same period last fiscal year, the company reported a net profit of Rs.920 million. In addition, the company started building the new terminal-3 last year. With the renewal of the UDF, GMR Group would be able to keep its profit margin.

Meanwhile, Rajiv Gandhi International Airport of Hyderabad and Indira Gandhi International Airport of New Delhi were ranked first and fourth in the latest ASQ rankings of the Airports Council International. Both the airports are maintained by the GMR Group.

The awards will be formally presented on April 7, 2011 at the ACI Asia Pacific Regional Conference and Exhibition that will take place in New Delhi.

Related articles:

The Economic Times

IBN Live