‘Reneging on our commitment will damage credibility’

‘Reneging on our commitment will damage credibility’
C G Krishnadas Nair


Airline passengers, corporates and the social elite in Bangalore are raising their voice against the closure of HAL airport. It is argued that road / railway connectivity to the new airport is not yet properly established and this will cause hardship to passengers. They argue that growing passenger / cargo air traffic will justify two airports in Bangalore. None of these organizations or people voiced their opinions when the government signed the agreement with BIAL, agreeing to close HAL airport when BIAL begins operations. Only HAL and IAF made some protests at that time.
However, the facts of the case presented now are true. Passenger traffic has grown over the years from below 3 million per year to over 10 million per year and will reach, even at a moderate growth of 20% per year (the present growth is more than 30%), 14 billion by 2010 and 24 billion by 2015. BIAL itself was originally designed for only about 5 million passengers / year and subsequently to increase to 8 million in phase 2. Also, there has been a tremendous growth in air cargo traffic. All this will lead to terrible traffic congestion on Bangalore's roads. Keeping both airports operational makes a lot of sense. Also, it is a matter to be considered that HAL and the Airports Authority have spent over Rs 100 crores in the past 2-3 years to keep up with the increase in traffic, both domestic and international. Both public sector organizations stand to lose several hundreds of crores of rupees revenue per year and face serious problems of resettling their work force if HAL airport is closed.
Several public interest petitions have been filed challenging the closure of HAL airport. Some argue that BIAL was planned only for about 5 million passengers per year at the time of agreement and now the traffic has doubled. They argue that the government should not close HAL airport in view of tremendous growth in air traffic and to keep in line with public interest.
However, this is not in line with India's credibility for honouring our legal commitments and our judiciary. It is also to be noted that both the state government and central government (Airport Authority) are joint venture partners in BIAL. Some people have suggested that the government may buy out shares of other private partners and then run both new and old airport. This is not practical and against our published policy of liberalization and public private sector partnership. Under the circumstances, we should explore and find a solution which will meet the interests of all and will be legal and a win-win solution for all.
HAL airport is managed as a consortium between HAL and Airports Authority of India. HAL owns the runway, taxi track, aprons and ATC, whereas AAI owns the terminal buildings and associated facilities. HAL and AAI work on a revenue-sharing principle. Is it then possible for AAI to consider handing over its assets at HAL airport to BIAL management and increase its stakes in BIAL as a JV partner?
BIAL and HAL may then manage HAL airport as a consortium between BIAL and HAL as is being done now between AAI and HAL and have a similar revenue-sharing principle. Some domestic transport and cargo may be operated from HAL airport as mutually decided and as per convenience of airlines and market / users, whereas some domestic transport may operate from BIAL for convenience of international passengers.
This can be reviewed from time to time as the traffic grows. This will be a win-win solution for BIAL JV partners as well as for HAL and the passengers and other airport users.
(The writer is former chairman, HAL)