BIAL to appoint key service providers by mid-2006

BIAL to appoint key service providers by mid-2006

The Hindu Business Line

EVEN as Bangalore's new international airport awaits a decision on redesigning its first phase and possibly some additional features, the implementing company BIAL expects to pick four of its key service providers by mid-2006.

These service providers or concessionaires have to be in place by the time the greenfield airport begins commercial operations in April 2008.

Among them, the selections for the fuel facility operator should be through by February 2006; for cargo handling by March-April; and ground handling by June next, along with flight catering which is yet to be offered, according to Mr Stephan Widrig, Chief Commercial Officer, Bangalore International Airport Ltd (BIAL).

The two bids for the three third-party operators were called in October and November this year, three months after the Rs 1,411-crore project achieved financial closure.

By BIAL's conservative estimates, Bangalore's air traffic could touch 7 million by the time the airport opens in 2008; and top 8.5 million two years thereafter. The expectation on cargo itself is around 1.4 lakh tonnes a year.

The last concession to be offered would be the into-plane bid (filling the fuel). It would come up around August next, by when the other four would be known.

"The fuel facility has one operator. There will be two into-plane agents; one of them could be the operator," Mr Widrig, who took charge three months ago, said in response to a query.

Of the 3,800 acres of land BIAL has at its disposal to develop the airport over two phases, 300 acres of real estate would be leased out. The company is finalising its commercial development strategy.

The space would be offered to offices of various service providers, a five-star hotel brand, retail and entertainment outlets; besides two duty-free shops for the two separate terminals for arrivals and departures.