Germanys Fraport for Airport Projects in India

By: Propertiesmls

Germany's Fraport AG, Frankfurt Airport Services Worldwide, plans to adopt a multiple partner approach for airport projects in India. The company is also examining various airport projects with real-estate developer DLF Ltd.

Mr Christoph Nanke, Senior Executive Manager, Fraport Global Investments and Management, as well as alternate director on Board of Delhi International Airport Ltd (DIAL), said, 'We are currently looking at various projects within India. The approach would be having multiple partners. Fraport would prefer having a minimum of 26 per cent stake in the project.'

The German company, which is the owner and manager of Frankfurt airport, is looking for investment opportunities where prospects are high, and the projects are economically viable. Fraport has already forayed into airport modernisation projects in India with a GMR Group-led consortium for Delhi airport through DIAL.

As regards tie-up with DLF, Mr Nanke said, it would not be limited to DLF's SEZ projects alone. Fraport and DLF already have an agreement for exploring business opportunities in the sector. He, however, declined to give the names of the projects the two are examining. The company was looking at three-four projects, including the Goa project.

'No breach of clause'

Brushing aside talk that the tie-up with DLF would adversely impact its relations with GMR, Mr Nanke said, 'The tie-up with GMR is project specific and does not lead to any breach of clauses. The company was targeting to finish the Delhi airport project on schedule.' In fact, GMR and Fraport have competed against each other for the Turkey project.
For smaller, non-metro airports, the company would prefer to get two-three projects together, as it would make more economic sense, he said. Besides, the company would also prefer management control in these projects.

Global projects

Apart from opportunities in India, Fraport was also keen on expanding its business in China, West Asia and parts of Europe. For global projects, Fraport does not rule out the possibility of roping in lenders as partners. On whether India was ready to have low cost airports, he said, the market in India is yet to mature for low cost airports to become viable.

Stating that Asia will continue to be the fastest growing region according to all forecasts - IATA, Airbus and Boeing - he said, India and China will top with the double digit growth in the coming years.

As regards, how the business opportunities in India are different from that in China, he said, 'both India and China are currently at a similar stage of development as far as the sector was concerned. However, in India there are various levels of deliberations and discussions, while in China the decisions are taken at one level.'

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Source:

India Properties
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