Regulator snubs revenue projections at Adani-controlled Thiruvananthapuram airport

The Adani-controlled Thiruvananthapuram Airport’s projection of revenue from non-aeronautical services such as the sale of food and beverages — used to subsidise costs levied on airlines and passengers — is just a “miniscule” 12% of the norm, according to the country’s airport tariff regulator. “This will impact the interest of the airport users, as 30% of the non-aeronautical revenue is used for cross-subsidization,” the AERA said. The regulator also pointed out that while the airport operator planned to expand the passenger terminal building, as well as undertake re-alignment to create more space, “however, the airport has not proposed any incremental revenues from non-aeronautical services that may be earned from increase in space.” Excluding competition It has also questioned the manner in which a master concessionaire for non-aeronautical activities such as food, beverages, and retail merchandise was awarded to the holding company, Adani Airport Holding Limited, through exaggerated bid criteria to exclude competition, such as a steep annual turnover of ₹750 crore. It has also called AERA’s proposed figure of ₹395 crore as non-aeronautical revenue as a “notional revenue” not supported under the AERA Act 2008.