Travel Retail and Duty Free Business Intelligence    Tuesday 29 July 2014

NEWS

Hyderabad airport opening hit by last-minute delay after inauguration by Sonia Gandhi – 16/03/08

Published: 16/03/08

Source: ©The Moodie Report

By Martin Moodie

INDIA. In a landmark day for Indian aviation the new greenfield Rajiv Gandhi International Airport at Shamshabad near Hyderabad was inaugurated by Sonia Ghandi, President of the Indian National Congress and Chairperson of the ruling United Progressive Alliance, on Friday.

But the euphoria of the inauguration was dampened by subsequent news that the airport’s opening today [Sunday] had been subject to a last-minute delay. In an unexpected turn of events, the Ministry of Civil Aviation issued a notification overriding its earlier notification to shut down the old airport at Begumpet in Hyderabad.

GMR-Hyderabad International Airport Ltd said in a statement: “The new Rajiv Gandhi International Airport (RGIA) is ready in all aspects. We understand that some airlines have approached the Ministry of Civil Aviation seeking more time to begin operation from RGIA.

Rajiv Gandhi International Airport at Shamshabad – "the dream of Hyderabad"
"Acceding to their requests, the Ministry of Civil Aviation has advised us to begin operations in a few days. We will intimate the new date and will commence operations soon.”

The news is a blow to the GMR group as well as its commercial concessionaires such as HMS Host (food & beverage) and the retail alliance between The Nuance Group and Shoppers’ Stop. Local reports in India said the delayed opening is due to differences that have arisen between low-cost cost airlines and the airport developers on the issue of ground handling. Airlines such as Spice Jet, Go Air, Indigo and Paramount reportedly wanted to continue their own ground handling as they did at Hyderabad’s existing airport. But GMR is insistent the carriers use the two companies it has appointed – Menenzis and AI Sats – to handle this business.

The new international airport maintains Hyderabad's long and proud history of aviation development
News of the delay mirrors events in Bangalore where the opening of the much-anticipated new Bengaluru International Airport has been moved back to 11 May from its planned 30 March debut. These hiccups underline once again the complexity of implementing such ambitious change in India's aviation sector.

Friday’s ceremony was a colourful and poignant affair, with Sonia Gandhi – the widow of former Indian Prime Minister Rajiv Gandi who was assassinated in 1991 – inaugurating the airport in the presence of Chief Minister Dr Y.S. Rajasekhara Reddy and Minister of Civil Aviation Praful Patel.

Mrs Gandhi described the event as momentous not only for Hyderabad but for the entire nation. She recalled her husband’s association with Hyderabad, where he took advanced training in aviation. ‘‘Rajiv would have been happy, had he been here today,’’ she said.

In her address, she paid tribute to the thousands of workers who had toiled to make "the dream of Hyderabad" come true.

GMR Group Chairman GM Rao explained the facilities available at the new airport while Minister Patel said the hoped that improved aviation facilities would trigger economic growth.

‘‘No longer is air travel restricted to the elite. Even ordinary farmers can fly, and moreso they could augment income by exporting farm produce to the cities in India and abroad where they would get a better price,” he said.

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NOTE: The Moodie Report India, part of our dedicated regional news section on this website, contains all stories on India’s travel retail industry dating back to early 2003. You can access it via the dropdown menu on our home page under Regional News or by simply clicking here.

MORE STORIES ON THE NEW AIRPORT AT SHAMSHABAD

History is made in Hyderabad as first testing flights touch down at new international airport – 14/02/08

GMR-HIAL awards Fixed Line Services concession to Tata Teleservices – 28/12/07

Shree Raj Travels & Tours wins airport shuttles concession at Rajiv Gandhi Airport – 14/12/07

High expectations in Hyderabad as opening day for greenfield airport draws near – 01/11/07