CITCO to shut outlet for international travellers at Chandigarh airport
CITCO opened two food outlets at the airport in December 2016 and is paying Rs 10-lakh monthly rent for both. However, it incurred Rs 50-lakh losses in running the outlet for international passengers because of low business volume.
Running into losses, the Chandigarh Industrial and Tourism Development Corporation (CITCO) has decided to shut down its lounge for international travellers at the city airport from May 15. However, the other outlet for domestic travellers will continue to operate, for now.
CITCO opened two food outlets at the airport in December 2016 and is paying Rs 10-lakh monthly rent for both. However, it incurred Rs 50-lakh losses in running the outlet for international passengers because of low business volume.
At present, only three international flights – Bangkok (four days a week), Dubai ( daily), and Sharjah (three days a week) — operate from the airport, with a weekly footfall of 4,000 — both arrival and departure.
“Since we were running into losses, we have issued a notice to the airport authorities about closing the outlet for international travellers. But, for the time being, we will continue with the outlet for domestic circuit,” said CITCO chief general manager Uma Shankar Gupta.
Even, the airport authority has written to CITCO, asking it to pay Rs 50 lakh outstanding dues. “We have recently issued them a letter to pay Rs 50-lakh dues,” said Suniel Dutt, chief executive officer (CEO), Chandigarh International Airport Limited.
Meanwhile, a senior CITCO officer, who did not want to be named, said, “The outlets were opened in haste without any business analysis. This at a time when Baithak at Kalagram and Drop In at Sector 34 were being outsourced due to CITCO’s inability to operate them on their own. Already, huge investments have been made on equipment and manpower.”