Standard Post with Image

GMR Airports Unlocks the ADF Issue

  • GMR Infra remains under pressure as the regulator decides on the Airport Development Fee (ADF) issue. Siddharth Kapur, CFO, GMR Airports, discussed the ADF issue with Bloomberg UTV.Kapur explained that February 15, 2012 is the last date for the regulator to provide some clarity on the issue of tariffs. However, a few weeks will be needed to evaluate clarities on tariffs and the order for tariff hike may be effective from April 1.He also clarified that there has been no increase in aeronautical charges from a long time and despite the increase in charges the impact will not be significant for airlines.
  • He said he completely understood the position of airlines and that they have bigger issues to address. He said that the financial position of Delhi is in a bad shape and the company is expected to incur losses of over Rs 900 cr in Delhi airport. According to him, the proposed tariff increase is for a 2 year period.On commenting about the hike in the fee, he said that, the decision is still undergoing a consultation process. He stated that the company needs to be financially viable and robust.
  • He also said that the Male airport is running normally and the company is committed to working in Maldives. The company is also in its foray for the Navi Mumbai project, and he expects clarity on the same.His take on the international forays of GMR Airports was as follows:

Decided   - not to bid for Croatia

Looking   = at all international opportunities

Brazil    - opportunity was effective

Entered   - Brazil     late

Decided   - not to bid for Brazil

Looking   - for opportunities in Asia, EU, Latin America

  • At close today. the stock was at Rs 29.65, down 1.00%, on the BSE.

Source