Frankfurt Airport operator Fraport (FRA) is divesting from stake in Delhi International Airport Limited (DIAL) in India.

FRA is selling its entire 10% stake in DIAL — the joint venture that operates the airport – to its majority owner, GMR Airports Infrastructure Limited (GIL), for US$126 million. 

  [Source: Fraport]

"After a successful 18-year partnership driving impressive growth in Delhi, it's time to start a new chapter," said Dr Stefan Schulte, chief executive officer at Fraport.

"We look back with pride on the various milestones we've achieved together with GIL. We jointly upgraded and expanded Delhi Airport into one of Asia's leading air transportation hubs," he added.

Despite the divestiture, Fraport noted that it will continue to support operations at DEL under an existing Airport Operator Agreement.

"I'm pleased that we will support and stay connected with our partners in Delhi even after the closing of the transaction," Schulte said.

The Fraport Group has held its stake in Delhi Airport since India’s capital gateway was privatized in 2006.

Fraport expects the transaction to be closed within the next 180 days, subject to approval, particularly by the Airports Authority of India (AAI) and GIL shareholders.

The additional cash inflow from the divestiture will contribute to further reducing the Group’s net financial debt, the airport operator said.

Meanwhile, as FRA divests from DIAL, it is increasing its investments in Frankfurt Airport. Earlier this year, it announced the development of a new cargo masterplan.

The investments will focus on digitalization, redesigning the CargoCity South Area, and developing a new LogisticsHub West. Fraport expects cargo volumes in Europe's busiest air cargo hub to increase to around three million tonnes per year by 2040.