`This is the first airport with a long-term master plan'

`This is the first airportwith a long-term master plan'

The Hindu Business Line

HE was sent to build the first Indian public-private funded greenfield international airport, but had to go back by the same flight to Malaysia, just 90 minutes after landing in Chennai. Mr Albert Brunner can now laugh at his first brush with Indian bureaucracy on that day in January 2002. It's another story that he returned in a couple of days, armed with a visa (he had wrongly believed the Swiss did not need one in India, as in most parts of the world) - and all set for the mission. Sheer optimism paid off as he stayed put through the many legislative uncertainties and the promoters' birth pangs to see Bangalore's dream airport operating by mid-2008.

The CEO of the SPV, Bangalore International Airport Ltd, nurses his own views on issues from visas on entry, baggage checks, to ground handling. With the project officially ticking from July 2, Mr Brunner speaks for the first time on the tasks ahead with the Rs 1,411-crore airport at Devanahalli. As only someone who has piloted one of the most challenging airport expansions back home in Zurich can do.

The Bangalore international airport process must have been a long bureaucratic haul. Since the bidding process began in May 1999, what have been the highs and lows of getting a greenfield airport off the mark?

I came into the picture in January 2002 at the signing of the shareholders' agreement. There have been many highs and lows. When I first came to India I realised how badly needed this airport is and that there is no real opposition to it. In Europe it is very difficult to build or expand a greenfield airport due to political and environmental resistance. Here everybody was supporting this project and that made me comfortable.

But soon I was disappointed to see how much time everything needs. It also took me some time to understand how difficult the structure here is, with different shareholders. Being the first private airport in India, it's easy to blame the governmental organisations for the delay but it would not be fair. For them, it was the first concession agreement, the first CNS/ATM, State support and land lease agreements. Everybody had to (take care) not to make mistakes for any future agreement.

How does this compare with the fifth expansion of the Zurich airport that you were in charge of before this project?

From the construction point of view, Zurich was more challenging, but from the overall scope Bangalore is much more interesting. (At Zurich) It took five years before we could start construction. We had to twice fight an environmentalists' appeal to the (Swiss) supreme court and we won both the times.

Comparisons are difficult. In Zurich it was a huge, complicated expansion on an operational airport running to capacity and cost around $1.8 billion. We are lucky here because we can build from scratch, there is no air traffic. We also have to recruit, train people and build up the future organisation of the airport.

What really can the private promoter give Bangalore?

This is the first airport in India with long-term vision and long-term master plan. We have huge land (3,900 acres) at our disposal and we have a clear picture how it may look in 40 years. Whenever the need arises we can expand.

What will set Bangalore apart from the rest of Indian airports?

Our aim is not to build the nicest airport in terms of architecture; but to build a financially sound airport, which is operated exceptionally well and passenger-friendly. You may find many nicer airports than Changi (Singapore) but it is operated well and rated among the best airports.

Here, for example, I'd like to ease the passenger flow. It's not a good idea to screen the baggage first before somebody checks in. It hinders the passenger flow, it's not safe and it's easy for a passenger to put something into a baggage that has been screened. We'd like to see that the passenger goes directly to the check-in counter and the baggage is checked afterwards when he has no more access to it. As in Singapore.

How do you propose to go about building the airport business?

We would like to boost the non-aviation revenue. Many good airports around the world make more money from non-aviation than from aviation activities. (That way,) the tariffs would be cheaper and you would be competitive and attractive for the airlines.

Many airports have it at 50:50; Copenhagen, Schipol (Amsterdam) and Zurich have more than 50 per cent non-aviation revenue. In our case, (when we are) starting a new airport 30 km away from the city — which is neither that big nor is a hub — it is not easy to increase it. We are starting with a rather modest figure and will have to increase it steadily.

What will be your USP for airlines and non-aviation businesses?

At the beginning, it will be difficult for us to be competitive. So we will have to make (the most) in non-aviation revenue. We would like to offer space (of which) we have enough for all infrastructure — be it cargo terminal, catering, maintenance, advertisements, hangars or fuel parks. For all these services we'd like to find concessionaires in an open and competitive way.

We have huge spaces. We plan to use 320 acres at prime location for activities such as a hotel, office space, shopping and entertainment.

At what stage will the concessionaires come in?

Some of them have to be ready when we open the airport. An important one is the fuelling system, the first one that we have to select. An underground line has to be built. We will start the bidding process in a few weeks from now and then go for the other concessionaires.

The cargo hangar may take 18 months to build, so we still have time. The shops, or a big mall, can come later. The hotel is not a must but it may be one of the next ones to come as it takes a long time to build one.

Which airlines could we expect?

We have intensified our contacts with Air-India and Jet Airways. Among the foreign airlines, we now have from the East, Singapore Airlines, Malaysian and Thai. It would be nice having a fourth one like Cathay (Pacific). From the West, there is only Lufthansa, but that will change now. Air France is confirmed from the coming winter. KLM/NorthWest and British Airways are confirmed, too. I'd also love to have Emirates flying to Bangalore.

Is there any specific hotel chain on the radar?

You have domestic brands such as the Leela, Taj and Oberoi which provide world-class services. I hope I can encourage one of these chains to come. My aim would be to have a hotel in walking distance of the airport.

Connectivity to the airport venue at Devanahalli is very poor right now.

Yes, it is important to have good access. Even in Mumbai and Delhi, reaching the airport is difficult. In the future we need more connections between the city and the airport. The Government has made a good decision to build a six-lane highway and we will encourage them and ensure that the construction is completed by the time the airport is ready; but they also need to build a fence along the highway (to prevent cross traffic).

If you look at Zurich, it is not just an airport but has a direct rail link, a route line for international trains, and a huge bus hub.