GMR announces deduction of US$ 25 from fee paid to government

GMR has informed Airports Company Limited that since the Court has decided that passengers departing from Ibrahim Nasir International Airport cannot be charged US$ 25 as Airport Development Charge (ADC), this amount will be deducted from the concession fee paid by GMR to the government.

The proposal by GMR to cut this amount from the concession fee paid to the government once every three months, was submitted to Airports Company on 26 December.

Economic Minister Mahmood Raazee, who was one of the people in charge of the bid evaluation committee which awarded the management of the airport to GMR, said that GMR has proposed payment of the concession fee to the government after deducting the estimated US$ 2 million to be received as ADC.

“They have requested from the Airports Company that this amount be excluded until the ADC can be charged,” Raazee said.

Even though GMR had decided to impose this charge (something the airlines were not in favor of) from 1 January, the Civil Court had decided last month that this charge is in conflict with the law and ordered GMR to not proceed with it.

Raazee said that legal advice is being sought with regard to this issue, and GMR’s proposal will only be approved if the agreement allows it.

“We do have an agreement. We have to see if this can be done within the terms of the agreement. Therefore we are looking into the matter. The proposal will be acted upon if it is in line with the agreement,” Raazee said.

GMR estimates to receive US$ 2 million per month from the nine million passengers who use the airport, which gives a figure of about US$ 24 million per year.