GMR’s airport segment grows with Male’ Airport acquisition

The airport segment of Indian infrastructure giant GMR has grown become a significant contributor to the company’s revenue, reports financial news website India Infoline, with both the Delhi and Hyderabad airports witnessing stable growth in passenger and cargo volumes.

The company’s airport segment accounts for 40 percent of the firm’s total revenue. With the Male’ airport operations already profitable and with high passenger revenue of $US50 per passenger (compared with US$12 and US$17 per passenger at Delhi and Hyderabad airports), the existing revenue is expected to account for a third of the company’s airport operations.

Male’ International Airport generated US$135 million in revenue last year, Infoline reported, with an operating profit of US$30 million. Being an exotic tourist destination, “air traffic in Male is expected to be steady”, the site added.

GMR has taken debt of US$358 million to complete US$511 million deal to construct a new terminal, and will charge an extra US$25 per passenger, the site reported.