The Ministry of Civil Aviation has directed Airport Economic Regulatory Authority to adopt a hybrid till with 30 per cent cross subsidisation for the determination of tariff for GMR Hyderabad International Airport Limited.
GMR Hyderabad International Airport Limited (GHIAL) is a subsidiary of GMR Infrastructure Limited. The Rajiv Gandhi International Airport located at Shamshabad near Hyderabad has been built by GHIAL.
In a statement to BSE, GMR Infrastructure Ltd has informed that the Ministry of Civil Aviation (MoCA) has directed Airport Economic Regulatory Authority (AERA) under AERA Act, 2008 to adopt a Hybrid Till with 30 per cent cross subsidisation for the tariff determination of GMR Hyderabad International Airport Limited (GHIAL).
AERA had passed an order on February 24, 2014 determining the tariff of GHIAL considering a Single Till methodology of tariff determination. Single Till being not in line with the concession agreement, GHIAL had appealed against this order of AERA by filing a writ petition in the High Court of Andhra Pradesh.
After various hearings, the Court had directed MoCA to pass an order on the appropriate till methodology to be used for tariff determination of GHIAL, according to a statement made to BSE.
Under the hybrid model, an airport operator adds the non-aeronautical revenue to the overall revenues. The aeronautical revenues are decided on the overall earnings.