Bengaluru: The Bengaluru International Airport (BIAL) posted a net profit of ?848 crore in the financial year 2017-18, a 33% jump from the previous year. The sharp increase comes on the back of ridership growth, a spike in rental income and higher revenue collections from user development fee (UDF).

The 2017-18 annual report, uploaded on its website, shows the Fairfaxbacked Kempegowda International Airport (KIA) reported a total revenue of Rs 1,551.7 crore, an increase of 15% over the previous year.

The spike in revenue from UDF, charged on passengers for the development of the airport, is one of the reasons for the increase in net profit. Total UDF collection went up from Rs 495.9 crore in 2016-17 to Rs 571.5 crore in 2017-18. Though the UDF tariff remained the same in both the financial years, the increase of Rs 75 crore in the fee collected has been attributed to the rise in ridership.

Even the income from rentals shot up in 2017-18. BIAL earned Rs 74 crore more than it did in 2016-17 from retail spaces, building rentals, parking fees, etc. In total, the non-aeronautical revenue came up to Rs 578.9 crore, up from Rs 502.8 crore in 2016-17. There was, however, not much of a difference between 2016-17 and 2017-18 in revenue earned from other sources. This includes income earned from charging landing fees and aircraft parking fees. “The Kempegowda International Airport, Bengaluru, is a regulated entity and the aeronautical tariff is determined by the Airport Economic Regulatory Authority (AERA). Since the tariff is determined for a five-year control period, any higher/lower revenue earned in a particular year is trued-up during the remaining years in the period or the subsequent control period,” the BIAL spokesperson said.

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AIRPORT HANDLED 2.7 CRORE PASSENGERS

The Kempegowda International Airport handled 2.7 crore passengers between April 2017 and March 2018, a 17.6 % growth compared with the previous year. The daily ridership, on an average, comes to 73,000. So far, the airport has handled over 15 crore passengers, making it the third-busiest airport in India after New Delhi and Mumbai.

Currently, the BIAL has undertaken large-scale infrastructure development, including construction of a second runway, a new terminal and underground tunnel. Once ready (early 2021), the airport will be able to handle about 65 million passengers. The total cost of the expansion work is estimated to be Rs 13,500 crore.

The operators plan to use the profit towards these expansion plans.

“The entire profit earned in the current year, along with accumulated earnings, is earmarked for use in the expansion,” an official statement, in response to a query, said. “The BIAL has not declared any dividend to shareholders from the profits earned for FY 2017-18. BIAL has declared dividend in only two years. And 92 per cent of the profits have been reinvested in the development of the BLR Airport.”





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