Recovery slower-than-expected for airport operators

India Ratings & Research (Ind-Ra) says that the five airports managed by private sector concessionaires (JV airports) have witnessed negative yoy growth in domestic passenger enplanements for the first time since recovering from the global financial crisis (2008-2009). The five airports are Delhi International Airport (DIAL); Mumbai International Airport (MIAL, „IND BBB+/Stable); Bengaluru International Airport (BIAL), GMR Hyderabad International Airport (GHIAL, „IND A-/Stable) and Cochin International Airport (CIAL). Combined domestic enplanements of all the five airports declined by 6.88% to 60.68 million in FY13, though the pace of decline varies at different airports. DIAL witnessed the steepest decline (negative 9.27%), followed by BIAL (negative 8.27%), CIAL (negative 7.97%), GHIAL (negative 5.5%) and MIAL (negative 3.64%). Negative Growth in State-run Airports: Domestic enplanements in major government-run airports in Chennai, Kolkata, Ahmedabad and Goa also declined 5.27% yoy to 22.97 million in FY13 on a combined basis. The major decline was seen at Ahmedabad airport, down 15.33% yoy to 3.34 million in FY13. Short-term Decline: The decline in domestic enplanements is primarily driven by the overall slowdown of the domestic economy. However, the decline may appear a short-term phenomenon considering that the said airports together witnessed a positive CAGR of 14.44% in domestic enplanements during FY09-FY12 post the global financial crisis.
Read News In Full 20/09/13 moneycontrol.com