Chandigarh Airport incurs ₹40 crore loss in 4 months, 90% drop in footfall
Ajay Bhardwaj, chief executive officer (CEO) of the airport, says losses of ₹8.5 crore incurred every month, only 1,000 passenger footfall being recorded
hillaryvictor@hindustantimes.com
Even though domestic flights resumed at Chandigarh International Airport from May 25, it incurred ₹40 crore losses due to the Covid-19 lockdown and a 90% drop in footfall, airport authorities said on Thursday.
Sixteen stores retailing high-end brands out of 28 wound up operations and the other 12 closed down temporarily as crowds thinned out
Flight operations at the airport ceased on March 24 due the Covid-19 lockdown and footfall reduced drastically by 90% with just 1,000 passengers per day passing through instead of 12,000 before the outbreak.
Only 22 flights are operating now instead of the regular 44 and two international flights before March 22.
Ajay Bhardwaj, chief executive officer (CEO) of the Airport, said, “We have suffered a loss of around ₹40 crore in the past four months as we are losing ₹8.5 crore every month. As far as waiver of rent of shops at the airport goes the authorities will take the decision soon.”
Even if the outbreak was controlled it would take around six months to one year to normalise operations, Bhardwaj added.
The airport earns most of its revenues under the aeronautical category, whereby it charges ₹800 per passenger from the airlines. For instance: An airline flying to Delhi with 80% occupancy pays around ₹65,000 to the airport per flight. Commercial revenues come from rent of retail shops, office space rent, car parking and advertisements, and total revenues under the two heads come to around ₹30 lakh per day.
Chandigarh Airport was earning around ₹90 lakh per month from the shops as rent, but since March 25 no rentals had been paid.
A senior Air India official said, “Since the past four months we have been operating flights with 50% occupancy and sometimes 30%. People are not moving out due to Covid-19 and only travelling for important work. We are suffering a huge loss, but are helpless.”
The owner of a high-end brand store at the airport who did not wish to be named said, “We have already given our proposal for the waiver of rent for the shop for the past four months and hopefully the authorities concerned will consider it. Otherwise we will be forced to vacate the shop.”
