GMR Infrastructure has appealed to the Appellate Tribunal to further increase the aeronautical charges at the Delhi International Airport Limited (DIAL) that it manages. The Bangalore-based publicly-held infrastructure developer’s move comes hardly a month after the airport tariff regulator, Airports Economic Regulatory Authority (AERA), allowed a 16 per cent return on equity, while GMR had sought a 24 per cent return.
A GMR spokesperson confirmed that the company had filed an appeal for higher returns on its equity, saying 16 per cent was an option that would be difficult for the company to sustain. The company said considering additional investments done as per the terms of the concession, including capacity building and new features factored in, the rate increase effective from May 15 this year was less than half of the requested increase, and therefore, inadequate.
GMR also said that similarly, for quasi equity-based return on refundable security deposits, DIAL had been granted nil return. These factors had contributed to the approved revision in aeronautical rate not being in line with the expectation, GMR said.
“DIAL is making losses due to delay in revision of aeronautical charges and significant airline over dues,” the company said.
GMR has invested close to Rs 13,000 crore, and has developed a total of 5.5 million square feet at DIAL. DIAL posted a net loss of Rs 231 crore for the fourth quarter ended March 31, 2012, compared to a loss of Rs 115 crore in the year-ago quarter. Net revenues moved up marginally to Rs 2,024 crore.
The revised rates will be charged in the form of an enhanced landing and parking fee for aircraft and a user development fee for passengers. According to the new order, GMR is collecting Rs 426 per passenger, against Rs 101 earlier, on domestic routes and Rs 1,120 per passenger, against Rs 280, on international routes. Almost all airlines have understood to have filed in their appeals to AERA to resist the hike.
More From This Section
This is the second time that GMR Infrastructure has approached the tribunal, after an ongoing case demanding for the double-till model at the Hyderabad International Airport.
Early this year, AERA had said that all major airports except Delhi and Mumbai would charge under the single-till model, which, according to AERA, benefits airlines and passengers.
In the single-till model, airport charges are fixed by taking into account all main airport activities, such as aeronautical or flying-related activities and non-aeronautical activities such as commercial use of airport space. The dual-till model considers aeronautical activities.