GMR airport ops revenue to slide 20% on Male loss

Nov 29 2012, 03:11 IST
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SummaryWith the Maldives government terminating the GMR Group’s contract to operate the Male airport, the company stands to lose around 20% of revenues coming from its airport operation business.

insurance charges of $27.

GMR has said that as per their terms of agreement it was entitled to charge the airport development charge of $27 per international passenger from January 1, 2012. However, this had been disallowed by a Maldivian civil court in December 2011. GMR had subsequently written to the government that it would adjust the shortfall due to non-collection of ADC from the annual payable concession fee. The Maldivian government agreed to it vide its letter on January 5 but retracted from the commitment after March 31 and asked it to refund the adjusted payments.

Meanwhile, Maldivian President Mohamad Waheed hoped that the decision would not affect bilateral ties with India as the Male airport development contract signed by his predecessor Mohamed Nasheed's government was “void ab initio”.

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