Archive for the ‘GVK’ Category

Kingfisher in talks with GVK for repayment of dues

Thursday, March 19th, 2009

Kingfisher Airlines is in talks with the GVK-led Mumbai International Airport (MIAL) over repayment of Rs 19.70-crore dues for a host of overheads relating to landing, parking, route navigation levy and terminal charges.

Sources say that as part of this endeavour, it has kicked off the exercise with a “substantial part-payment”.
MIAL letter

MIAL’s letter dated March 7, which is in the possession of Business Line, says that it would “be constrained to deal with Kingfisher Airlines on a cash-and-carry basis from March 11” if the latter did not clear the dues.

Sources said that MIAL did not follow up on this ultimatum and extended the payment period instead.

“We regret to inform you that despite constant follow-up and reminders, we are unable to resolve this perennial impediment towards settlement of dues that have been defaulted in terms of timely payment,” the letter stated.

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Indian airport operators GMR, GVK Group eye Chicago’s Midway International

Saturday, July 5th, 2008

India’s GMR and GVK groups, the country’s top two airport developers and operators are set to bid for the privatization programme of Chicago’s Midway International Airport, company officials have hinted. The bids will be made in consort with other international partners, officials from both the groups said. The bids may entail financial commitments of around $1 billion (Rs4,300 crore), according to banking sources.

Under the privatization plan of the Chicago airport, the private developer will have long-term exclusive rights to operate the airport and collect all revenues associated with the operation of Midway, including aeronautical, leases, passenger facility charges and federal grants, subject to Federal of Aviation Authority, or FAA, rules.

The agreement period is expected to be at least 50 years.

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Airport cos refuse to cut charges for airlines

Thursday, June 26th, 2008

No respite seems to be coming the way of loss-making domestic airlines. While the empowered committee of state finance ministers has deferred a decision on the Centre’s proposal to rationalise sales tax on aviation turbine fuel (ATF), airport operators, Airports Authority of India (AAI), GMR-backed Delhi International Airport (DIAL) and GVK-led Mumbai International Airport (MIAL), are unlikely to cut landing and parking fees for airlines.

This is even as the civil aviation ministry has made a strong pitch for reduction in sales tax on ATF as well as airport charges by airport operators to prevent domestic carriers from facing a financial crisis.

Airport charges contribute 12% to the airlines’ total cost, with fuel sharing 40% followed by wage bill of 22%.
“We have not increased airport charges since April 2001.

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GVK-MIAL seek 10 per cent hike in Mumbai airport fees

Monday, May 5th, 2008

Already riding a wave of incremental increases in the costs of flying, air passengers are now faced with another rude shock with the GVK-led Mumbai International Airport (P) Ltd (MIAL) consortium, seeking a 10 per cent hike in aeronautical charges as well as a hike in passenger service fee to over Rs232, from the current Rs225.

Aeronautical charges are levied on airlines as landing and parking charges.

The GVK-MIAL consortium completes two year of operation on Saturday.

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Smaller aircraft can continue to enjoy free run

Monday, August 20th, 2007

Private airport operators like GMR-led Delhi International Airport (DIAL) and GVK-led Mumbai International Airport (MIAL) may need to alter their plans. The civil aviation ministry is set to oppose their proposal to restrict entry of smaller aircraft at Delhi and Mumbai airports.

Smaller aircraft are exempted from paying any landing charge leading to huge revenue loss to airport operators. It is believed that this was one of the triggers for the move by the new airport companies to restrict these aircraft. However, this move is likely to be thwarted by the government. While this segment constitutes almost 10% of Delhi airport’s entire traffic volume, at Mumbai it’s less than 10%.

“Private operators can not stop entry of smaller aircraft at metro airports merely on the grounds of congestion and unavailability of slots. Their unilateral decisions are not accepted,” an official in the civil aviation ministry said. Experts say that the real reason behind such demand by private operators is the revenue loss. As per the existing guidelines, aircraft with a take-off mass of less than 40,000 kg are not required to pay landing charges to the airports.

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Govt pulls up GVK-led consortium for slow progress in city airport modernisation

Saturday, August 18th, 2007

GVK-led consortium has drawn the flak of the government over the delay in execution of Mumbai airport project. While the company puts the blame on encroachments around the airport for the delay, civil aviation ministry says the consortium could still have carried out some significant work.

Speaking to ET, a top official in the civil aviation ministry said, “There are constraints such as land encroachment at the airport, but within constraints many works could have been done. We have told them that their work is not at all satisfactory.” The Mumbai International Airport (MIAL) has, however, denied such allegations.

“All projects at the airport are on the schedule as per the operations management and development agreement (OMDA) agreement. While some mandatory projects have to be completed by March 2008, others have to be finished by 2010,” a company spokesperson said.

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GVK Group to set up feeder airline, to bid for tier-II airport modernization

Tuesday, May 29th, 2007

Airports infrastructure player, GVK Power & Infrastructure Ltd, will launch a new airline, in association with a domestic carrier. It says that the new feeder service would focus especially on 35 tier-II city airports across the country, now being modernized.

According to GVK sources, their proposed airline will connect district cities to the State capital or the nearest metro, through small aircraft that seat around 70 passengers or less. According to these sources, the company would launch the airline service only in those States where it wins bids to develop airports.

GVK officials said that while their airline partner will do the flying, they would handle all the management functions of the airport.

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It’s consolidation time for GVK

Tuesday, January 2nd, 2007

The Hyderabad-based GVK group is consolidating some of its group companies, including two investing firms of Mumbai International Airport (MIAL) under GVK Power and Infrastructure (GVKPIL), which is a listed entity. Leading private equity investors such as Citigroup and Temasek have held talks with the group to pick up equity stake in GVKPIL, post-restructuring. Sources said the GVK family, which currently holds 65% stake in GVKPIL, wants to keep 51% with itself, and offload up to 15% to PE investors.

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Pvt operators project Rs 148 cr less revenue for metro airports

Saturday, September 9th, 2006

The GMR-Fraport and GVK-SA led consortia that have bagged the modernisation mandate for Delhi and Mumbai airports have projected revenues of Rs 1,180 crore from the two airports during the current fiscal. This is Rs 148 crore lower than the Rs 1,328 crore revenue earned by the state-owned Airports Authority of India Ltd from Delhi and Mumbai in 2005-06.

The conservative estimates are surprising given the whopping 50% jump in domestic traffic in the first half of calendar year 2006. International traffic too has grown over 35% during the period.

While GMR- Fraport led DIAL has projected revenues of Rs 580 crore, GVK-SA has estimated the revenues for 2006-07 at Rs 600 crore. Delhi airport had collected revenues to the tune of Rs 670 crore, while Mumbai airport generated Rs 658 crore in 2005-06.

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