GVK Power & Infrastructure Ltd has entered into an agreement for the operation, management and development of commercial facilities at Denpasar International Airport in Bali, Indonesia.
The Hyderabad-based diversified infrastructure company manages the operation of the Chhatrapati Shivaji International Airport (CSIA) in Mumbai and the Bengaluru International Airport.
The GVK management has signed a management contract with the Airports Authority of Indonesia, (Angkasa Pura Airports AP1), the Indonesian Government airport operator to manage the non-aeronautical commercial operations at Indonesia’s second busiest Bali (Denpasar) International Airport.
The scope includes both the existing terminals and the new international terminal that is currently under construction and is expected to open in the third quarter of 2013.
G.V.K. Reddy, Group Chairman, in a statement said: “This strengthens relationship with Indonesian Government. We are committed to bring our expertise and experience in transforming the Denpasar International Airport in Bali.”
“Retail, F & B and duty free are significant components of passenger experience at any airport. We are excited to provide passengers in Bali a truly world-class shopping experience, across brands, product variety and price points,” G.V.Sanjay Reddy, Vice-Chairman, said.
Bali has emerged as a prime destination for tourist traffic from Europe and Asia. However, airport infrastructure and the revenue from non-aeronautical sources such as retail, F&B, duty free and other services has kept a slow pace with the exponential growth in passenger traffic.
The GVK Group is already developing an international greenfield airport in Yogyakarta in central Java for the Government of Indonesia. This follows the MoU that GVK had signed in January 2011.
In India, GVK handles traffic of over 44 million in two airports in Mumbai and Bangalore.
On the BSE, the company shares closed at Rs 12.81, down 1.91 per cent.