Friday, September 02, 2005

Back to work on the airport

Back to work on the airport
Deccan Herald

After a brief lull, Albert Brunner, CEO, Bangalore International Airport Limited (BIAL), is back doing what he modestly calls his ‘work’. Last week, a parliamentary standing committee had flayed the manner in which the engineering procurement contracts (EPCs) for the airport project were awarded.

However, with the civil aviation ministry’s nod for the contracts, Mr Brunner has just shrugged and moved on, again. Speaking to Deccan Herald , the genial civil engineer said how ready he was to head the ambitious project which could potentially change the way Bangalore looks. Excerpts from an interview:

Now that the Civil Aviation Ministry has validated BIAL’s claims of transparency, you must be a relieved man. How did you take it initially?

First of all, I was surprised and after that tried to understand how they had come to this conclusion. I thought it must have been a misunderstanding.

Initial costs of the project have come up to about 24 per cent of the total investment. Don’t you think this has been quite an expensive start?

It may be on the higher side, but that is to a certain extent the price for being the first one, because the delay has cost a lot of money.

Note, however, that this 24 per cent includes all costs till the airport opening day, which include not only the development of the project and the running costs of our company, but also the extensive testing and trials before we finally open the airport.

How supportive has been the State Government?

After the election, the new people in charge were new to the project and the project was new to them. So, there were a lot of queries. But, then, they were very supportive.

What’s your time-frame for completing different phases of the project?

That will depend completely on the growth of the traffic. Our project is built in a modular way.

Whenever the need arises and we can afford it, we can expand.

How aware are you about the possibilities of operating a Rs 1,412 crore international airport in a city which doesn’t have the right connectivity or infrastructure that the passengers can bank on?

Our airport will contribute to the infrastructure of the city. Certainly, the infrastructure in Bangalore needs to be improved. I have the feeling that the people in charge of this are aware of it and are working on it. So I do not want to comment on it. We will try to make our project a success and contribute in this way to Bangalore as much as we can.

The BIAL project has for long been pitted in a race against the Hyderabad airport. From plans for the initial phases, would you be able to compare these two airports in terms of passenger numbers and services?

In terms of passenger numbers, we will be slightly higher than Hyderabad. I also personally believe that Bangalore has better potential. In terms of services, according to the concession agreement, we are both obliged to fulfil the same high service standards.

The Hyderabad airport has already caught the eye of domestic players like Sahara. Where do the BIAL plans for attracting airlines to set up hubs stand?

We are in discussion with airlines but it is too early to comment. We definitely will do whatever is possible to attract airlines.

Once the BIAL Airport takes off, would the HAL Airport cease to be operational? Has there been any agreement to this effect?

Yes, the present airport (HAL) will be closed for civil aviation. This is part of the concession agreement which was also signed by the Government of India.

How are you planning to go about inviting bids from concessionaires for commercial activities like cargo and fuel supply?

We are at present working on the procedure for inviting bids from concessionaires. It will be done in a competitive and transparent way. The basic philosophy is that there has to be competition among the airport concessionaires in order to achieve efficiency, quality, a good price and continuous innovation. We want to go for strong, experienced partners in long-term partnerships.

The BIAL blueprint envisages some ambitious plans to tap its commercial potential, like the concept of the Airport City. Would you be thinking of interlinking this to tourism at some point?

It’s too early to say anything about that. But if you have a hotel in mind when you mention tourism, then the answer is yes.

There’s an almost universal layman perception that links the architecture and landscaping of an airport to the standards it maintains. In your agenda, how important is the look of the airport?

A good look is definitely an asset. But good look is subjective. A very functional terminal building and a good operation are more important. We want to have an airport where passengers feel comfortable, where everything runs smoothly; passengers do not have to wait and are treated as customers. Furthermore, the airport has to be financially successful. The good look should not end in itself; it should help to achieve the overall goals.

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