The GMR Hyderabad International Airport today said it would need to reset the break-even point for the airport operations given the current slackness in the economy.
Airport's Chief Executive Officer P Sripathy said that break-even (no loss, no profit level) for the airport would not be possible until the year 2020 under the present conditions against 2014 that was projected earlier.
He said that the situation might change if the conditions improve in the country and other parts of the world.
Sripathy said the company would do its bit to improve the revenues and as part of the strategy, the company was now focusing to improve non-aero revenues. He also said that the company had been observing cost-cutting measures to improve profitability.
He defended its request made to the Airport Economic Regulatory Authority (AERA) to hike the UDF (user development fee), but did not divulge the quantum of hike proposed by the company, saying that he has submitted to the regulator how the hike is justified.
He said the Hyderabad airport grew lesser than the average and far below the growth registered by Chennai and Bangalore and hence hike in UDF was essential.
