GMR Hyderabad International Airport Ltd is considering challenging the regulator’s order scrapping the user development fee at Rajiv Gandhi International Airport here, a group official said today.
The order by the Airports Economic Regulatory Authority (AERA) will have a negative impact on the company’s financials, said Siddharth Kapur, Chief Financial Officer of GMR Infrastructure’s airport business.
“We are looking at all options, including the High Court.
There is an option of going to the appellate authority. We are also looking at going to the High Court. Within 30 days of the order, we will have to appeal,” Kapur told presspersons on the sidelines of India Aviation 2014.
The regulator on February 25 issued the order scrapping the UDF from April 1. The fee is being collected at the airport operated by GMR Group.
The order was issued after wide consultations with all stakeholders to determine tariffs in respect of the airport for the five-year period ending March 31, 2016.
Currently, each departing domestic passenger at Hyderabad airport pays Rs 430 as user development fee, while the levy for departing international passengers is Rs 1,700 each.
“It (AERA order) will definitely have a negative impact. We will work out the numbers. It is very difficult to say the numbers at this time. In fact it (the airport) has been making profits for the last three years,” Kapur said.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.