HAL airport to be a mall?

HAL airport to be a mall?
After Closure, Plans To Set Up 5-Star Hotel, Convention Centre
Anshul Dhamija & Mini Joseph Tejaswi | TNN

Bangalore: Bangalore’s HAL airport may well go on to become a premier shopping destination. After the closure of the airport in April, the arrival and departure lounges may be converted into a mega retail mall with multiplexes along with a five-star hotel, and a convention centre.
Several leading mall developers, retail players and hospitality chains are believed to be in talks with HAL authorities to take up the real estate on a lease arrangement.
Industry sources from the retail and realty sectors have confirmed to TOI that the PSU is holding talks with several parties on this matter. The Airport Road area can fetch monthly retail rentals of Rs 80-100 per sq foot.
“It’s definite that HAL is very keen to rent/lease out the space either to a retail brand or to a luxury hotel chain.
Over a dozen parties have already evinced interest,’’ said a source close to the development. Top officials in HAL denied any such move.
The entire front portion of the airport, including parking areas and lounges, is proposed to be converted into an area for mixed use development, while the rear will house HAL’s maintenance, repair and overhauling (MRO) facility.
This indicates that the country’s largest defence manufacturer is not particularly keen on keeping the existing airport open for commercial operations.
Once the upcoming Bangalore International Airport opens on March 30, HAL will have to shut down its commercial operations. HAL was annually earning close to Rs 300 crore by way of landing and parking charges.
Currently, the airport handles more than 350 flights a day. Of the total revenue, Rs 70 crore came from cargo handling. Sources said HAL is toying with the idea of retail in order to continue to earn revenues.
On the MRO front, the navratna company, according to informed sources, is in advanced stage of negotiations with a global MRO company for a 50:50 joint venture that would undertake extensive repairs and overhauling of both airframes and engines, and have a supply of spare parts for all aircraft types.
The MRO facility would serve commercial and defence needs and primarily look at servicing widebody aircraft (2-aisle configurations).
Names that are doing the rounds as potential partners with HAL are SIA Engineering (the MRO division of Singapore Airlines) and Lufthansa Technik.
HAL was earlier in talks with Airbus for setting up the MRO facility and with aeroengine major Pratt & Whitney for setting up an engine facility. But these appear to have fallen through.
toiblr.reporter@timesgroup.com