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India’s Airport Authority Earns Profit

: Dec 6, 2013 - : 9:07 am

New Delhi:State-run Airport Authority of India, which manages the majority of the country’s airports, is aiming to earn $240 million during current financial year, ending March 31, 2014.
The profit is expected to come as a result of growth in revenue after the country’s Airports Economic Regulatory Authority (AERA), recently revised airport tariffs, AAI Chairman V. P. Agrawal says.
“We have seen improvement in our bottom-line because of new increased tariff regime of AERA. We expect to earn a net profit of 15 billion rupees ($240 million),” he adds.
In view of this, AAI has also asked India’s airline companies to clear their dues.
The dues of private carriers are monitored on a regular basis and the AAI issues notices to the airlines for their settlement in case of delay. Besides, it charges penal interest on delays and when delays persist, it puts the airlines on cash-and-carry mode.
As a result, private carrier SpiceJet will pay up 250 million rupees ($4 million) by Nov. 29 to clear its outstanding dues. Jet Airways will clear 800 million rupees ($12 million) by Nov. 29 and another 120 million rupees ($2 million) of its dues by Dec. 10.
Jet Airways owes AAI a total of 1.6 billion rupees ($26 million) and SpiceJet 1.2 billion ($19 million) rupees. National carrier Air India has dues of 18 billion rupees ($ 290 million).

 

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