Faced with severe cash crunch GMR group?s Delhi International Airport (DIAL) has asked Airports Authority of India (AAI), also its joint venture partner in the Delhi?s IGI airport, for a R350-crore loan on commercial terms. DIAL has said it would repay the loan as soon as it gets its dues from airlines which have not paid airport charges for the last several months.
?We have discussed this issue with the aviation ministry. Air India owes us R350 crore in airport dues. We will pay pack to AAI after we get payment from the airline,? a GMR group official said.
DIAL has, meanwhile, received ten post-dated cheques from Kingfisher Airlines on account of dues of around R60 crore. Following the Delhi High Court order to stop collection of airport development fee (ADF) in June and a delay in government decision on revising airport charges, DIAL has seen its cash flow choking. It reported a net loss of R192 crore in the quarter ending June even as the traffic rose 23% during same period.
GMR group earns nearly 45% revenue from its airport business. ?Once we start collecting the development fee and the tariff revision is approved by the government financial position would improve,? the official said.
DIAL is levying airport charges as per the tariff plan approved by the government almost 10 years ago.
GMR group chairman GM Rao had met Prime Minister Manmohan Singh a few weeks back and had sought his intervention in finding a solution to the cash problem being faced by DIAL.
According to official sources Rao is believed to have given three point suggestion to the Prime Minister for addressing the financial problem.
?Rao has suggested that DIAL should share revenue with AAI on cash basis and not on traffic projection as mandated in the operation, management and development agreement (OMDA). Borrowing from AAI till Air India clears the dues was also proposed by him,? said the official who did not wish to be named.
As per OMDA which governs the agreement between AAI on behalf of the government and DIAL the latter is required to share 46% of its gross revenue with the public sector airport operator.
Bangalore-based GMR group holds 54% stake in DIAL with AAI holding 26%. Malaysia Airports Holdings and Fraport hold 10% each in the joint venture company.