AAI to inject over Rs.400 cr in Mumbai, Delhi airports

Contemplates civil suit against Kingfisher Airlines to recover dues
Comment E-mail Print Share
First Published: Tue, Oct 30 2012. 08 48 PM IST
Ajit Singh said imposing a levy for modernisation was never part of the original agreement between the airport companies and the government. Photo: Ramesh Pathania/Mint
Ajit Singh said imposing a levy for modernisation was never part of the original agreement between the airport companies and the government. Photo: Ramesh Pathania/Mint
Updated: Tue, Oct 30 2012. 10 30 PM IST
Mumbai: State-run Airports Authority of India (AAI) will invest some Rs.410 crore in the airport companies of Mumbai and New Delhi, two officials said.
Although the aviation ministry is yet to decide on the final numbers, the Mumbai airport operator is expected to receive Rs.295 crore and the Delhi airport, Rs.115 crore, said one of the executives. Both spoke on condition of anonymity.
Aviation minister Ajit Singh recently asked both operators, in which AAI has a stake, to do without an airport development fee from 1 January.
The fee is charge to bridge a gap of funding to modernize the airports. Passengers also pay a user development fee for using existing facilities.
The minister said imposing a levy for modernization was never part of the original agreement between the airport companies and the government but was allowed because AAI was unable to bring in equity. AAI is now in a position to invest, Singh said on 13 October.
“We do not have any funds as of now,” said the first AAI official cited above. “But we have huge outstandings from Air India Ltd and Kingfisher Airlines Ltd.” Air India owes AAI Rs.1,300 crore and Kingfisher Airlines, Rs.293 crore.
Government-controlled Air India will soon clear the dues, the executive said.
“We are contemplating to file a civil suit against Kingfisher to recover the dues,” he said. “We are also examining the possibilities of impounding the aircraft of Kingfisher.”
AAI will have to raise more equity and debt to soften the impact of lower fees from passengers, said the second executive cited earlier.
Mint could not immediately contact the airport operators for a comment.
Mumbai International Airport Ltd, led by GVK Group, runs Chhatrapati Shivaji International Airport in Mumbai, while Delhi International Airport Ltd, led by GMR Group, runs Indira Gandhi International Airport in New Delhi.
Comment E-mail Print Share
First Published: Tue, Oct 30 2012. 08 48 PM IST
blog comments powered by Disqus
  • Wed, Oct 15 2014. 11 40 PM
  • Wed, Oct 08 2014. 03 02 PM
Subscribe |  Contact Us  |  mint Code  |  Privacy policy  |  Terms of Use  |  Advertising  |  Mint Apps  |  About HT Media  |  Jobs
Contact Us
Copyright © 2014 HT Media All Rights Reserved