GMR Group: GMR Group proposes UDF hike at Hyderabad Airport; Airways’ physique opposes

The Federation of Indian Airways vehemently opposes a proposal by GMR Group to the Airports Financial Regulatory Authority searching for a rise of the aeronautical tariffs together with Consumer Growth Payment (UDF) at Rajiv Gandhi Worldwide Airport in Hyderabad. The AERA final month issued a session paper on the tariff revision for the third management interval (April 2021 to March 2026) proposed by GMR Hyderabad Worldwide Airport Restricted that manages the aerodrome, searching for feedback from the stakeholders.

The airport sought a rise of UDF from the prevailing Rs 281 to a whopping Rs 608 from October 1, a soar of 116 per cent for departing home passengers. Equally, the airport operator sought a 231 per cent hike on worldwide passengers to Rs 1,300 from the present Rs 393.

The GHIAL, throughout the third management interval proposed to steadily enhance the UDF as much as Rs 728 and Rs 2,200 by the tip of 2025-’26 for home and worldwide passengers respectively.

“On this regard, FIA humbly requests AERA to not implement any enhance within the aeronautical tariff within the Third Management Interval and defer any enhance in the identical to the following management interval, given the adversarial monetary impression of COVID-19 on airways,” FIA mentioned in response to the session paper.

FIA’s members are IndiGo, SpiceJet, and GoAir, in line with its web site.

At current, the airline operations are barely at 35-44 per cent of the pre-COVID-19 capability and the passenger site visitors at round 30-48 per cent of pre-COVID ranges, the airways physique mentioned.

As per business estimates issued by IATA and CAPA, airways are prone to bear losses of USD 8.0 billion for the FY 2020-21 and 2021-22 and it could take two to a few years for airline operations to achieve the pre-COVID-19 degree, by way of variety of flights and passengers, it mentioned.

Additionally, with restricted monetary assist from the federal government, airways are constrained to implement extreme value management measures to maintain its operations, it added.

“Within the given circumstances, it’s crucial that AERA doesn’t take any steps, together with by means of enhance in aeronautical tariff, throughout the Third Management Interval, which precipitates any additional adversarial monetary impression on the airways,” FIA additional mentioned.

Justifying the tariff enhance, GHIAL mentioned it’s making heavy investments on capability enlargement.

Nevertheless, FIA mentioned underneath the present state of affairs post-COVID, all non-essential capital expenditure needs to be placed on maintain or deferred, and solely such capex deemed crucial from a security or safety compliance perspective could also be undertaken by the airport.