BIAL sticks to decision on new airport user fee

BIAL sticks to decision on new airport user fee

Staff Reporter

It has sent a proposal to the Union Civil Aviation Ministry

Domestic user fee is Rs. 675; international traveller levy Rs. 955

It is the core of our revenue stream: BIAL CEO

— Photo: G.R.N. Somashekar

Albert Brunner

BANGALORE: The user development fee proposed by Bangalore International Airport Ltd. (BIAL) on outbound domestic and international travellers is likely to stay, with BIAL insisting on its imposition.

BIAL has sent a proposal to the Union Civil Aviation Ministry seeking to levy user development fee of Rs. 675 on domestic travellers and Rs. 955 on international travellers.
Reservations

The State Government, however, has expressed its reservation over levying hefty charges on outbound travellers.

Speaking to reporters here on Thursday, BIAL CEO Albert Brunner said: “It is the core of our revenue stream without which the operations would not be viable.”

He said that BIAL had agreed for uniform landing and parking charges for aircraft that are applicable at all the airports across the country.

It had, on the other hand, been allowed to impose user development fee for domestic and international passengers as a part of concession agreement signed with the Government.

“Some people say that we are going to get more passengers than what was projected when the agreement was signed. It is true. But it is also true that our investments on the airport increased from the estimated Rs. 1,400 crore to Rs. 2,400 crore at present,” Brunner said.

BIAL had incurred additional expenditure on construction of canopy, airline offices, landscaping and trumpet interchange, he added.

Incidentally, the promoters of the international airport at Hyderabad have not proposed a user fee.

On the projected passenger traffic, he said: “Three forecasts that have been made so far have gone completely wrong.” BIAL would be handling around 10 million passengers in the first year of its operations, he added.
Second airport

On the controversy on retaining the airport at HAL, he said: “The concession agreement does not allow operation of a second airport in the city. Allowing it would, in fact, be disastrous for both the airports.”
Failures

Dual airports in Milan, Montreal and Bangkok had proved “disastrous”, he pointed out. Transfer of passengers between airports and maintaining two sets of staff would be expensive. Business plans have been laid out by the investors based on the concession agreement and BIAL will not go back on the concession agreement, he added.

Bangalore, he said, had an opportunity to become an aviation hub in South India as there is none at present. “We are competing with airports in Hyderabad and Chennai for which a viable airport is necessary in Bangalore,” Mr. Brunner said.

“Perhaps, Bangalore can have a second airport in about 25 years when BIAL reaches a saturation point. Once fully commissioned, BIAL will have a capacity to handle around 40 million passengers annually,” he added.