GMR Hyderabad International Airport Ltd may contest AERA’s UDF order
Hyderabad: GMR Hyderabad International Airport Ltd (GHIAL) is likely to contest airport regulator’s decision to disallow it from charging user development fee at Rajiv Gandhi International Airport. “We are looking at all options, including challenging the order in the High Court. However, we may also move the appellate authority,” GMR Infra airports CFO Siddharth Kapur said here on Thursday.
The GMR Group needs to challenge the Airports Economic Regulatory Authority’s order within 30 days. This means the infrastructure developer has 12 days to take a decision.
If the order was not challenged, GMR led airport firm cannot collect user charges from April 1. Currently, GHIAL charges Rs 430 as UDF from departing passenger on domestic routes.
“It will have a negative impact. We will work out the numbers. It is difficult to say the numbers at this time. In fact it (the airport) has been making profits for the last three years,” Mr Kapur said. On Wednesday, airport companies have expressed their concern over the changing regulatory goalposts on issues including UDF.
