Tuesday, March 04, 2008

Credibility at stake: BIAL

Credibility at stake: BIAL
DH News Service, Bangalore:
Albert Brunner, CEO of BIAL, while making his point against the retention of the existing HAL airport, said, "Give me one reason, why it should be kept open. There are about three to four reasons on why BIAL can become the transport hub of South India...


Should the HAL airport be closed? What are the advantages of retaining a fully functional aerodrome equipped with all infrastructural facilities? Is connectivity the primary drawback of the new Bengaluru International Airport Limited (BIAL) at Devanahalli?

To debate these aspects of one airport or more and options for HAL airport, a lively session on what can be easily described as the talk of the town was organised by the Centre for Public Policy, Indian Institute of Management on Monday.

Albert Brunner, CEO of BIAL, while making his point against the retention of the existing HAL airport, said, “Give me one reason, why it should be kept open. There are about three to four reasons on why BIAL can become the transport hub of South India. The credibility of India is at stake. How can we convince our shareholders to invest in future expansion of the airport?”

Contract

“Apart from the reason that BIAL has a contract with the Government of India, where keeping the old airport open is in breach of our agreement/contract, keeping it open will ensure that Chennai or Hyderabad will stand to gain,” Mr Brunner said adding that the much awaited, historic day March 30 not being far off, the count down has begun.

Explaining economical reasons in favour of BIAL, Mr Brunner said the project that has seen an investment of Rs 2,500 crore, along with an additional investment of Rs 1,000 crore by various concessionaires, needs to be justified.

“BIAL also stated that aviation related reasons were also not convincing to have two airports at present. Once we are saturated in about 10 to 15 years from now, we will need two airports. Until then BIAL has the opportunity to become the air transport hub of the country” he said.

Deccan trials on March 7

Speaking to reporters, Mr Brunner said the secretary to the Ministry of Civil Aviation would visit BIAL on March 7.

“We will also commence public trials on the same day. Deccan and Kingfisher would take part in the trials. The first jet that was supposed to land in the last week of February, will now take place on the 7th,” Mr Brunner said.

Replying to a query he said that the first visit by officials last month was satisfactory. Mr Brunner added that talks were on with the ministry of civil aviation on the issue of the UDF (User Development Fee). “It is possible,” he said referring to a reduction in the UDF for international flights.

The BIAL has fixed Rs 955 and Rs 675 as UDF with a fifty per cent discount in the first two months of its operations, along with a PSF (Passenger Service Fee) of Rs 225.

1 Comments:

At Thursday, March 13, 2008 at 6:37:00 PM GMT+5:30, Anonymous Anonymous said...

Many residents of Bangalore prefer two airports.

Apart from convenience, there are serious concerns about the capacity of BIA, and this is not due to any fault of BIAL.

For the last 3 years, India is experiencing an economic boom that is fueling demand at an unprecedented growth rate -- a rate, no infrastructure project can keep up with.

Pragmatism suggests that it is good for Bangalore to keep both airports open, but, BIAL's promoters i.e. the financiers, see the opportunity to make a killing and are using the stick of wanting to make Govt. of India honour its contract.

Another school is dictating exactly this approach. Give BIAL all the air traffic. No problem. TAKE IT!!!! TAKE IT ALL!!!!!

However, lest you forget M/s BIAL, your contract does not entitle you ANY AIRSPACE.

So please take all the air traffic of Bangalore and deliver results!!!! We know you will saturate in 12 months, and you will not be able to expand. Let the planes circle for 2 hours overhead, THEN......Mr. Bruner, we will question you and your team.

Remember you have a performance clause in your contract.

 

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