Sunday, June 22, 2008

BIA may host international, budget wings

BIA may host international, budget wings
Could Become 1st Indian City To Have Dedicated Terminals
Anshul Dhamija | TNN

Bangalore: Bangalore could become the first city in India and the third in Asia — after Kuala Lumpur and Singapore — to have a low-cost terminal. And good for travellers, considering low-cost carriers cater to more than one-third of the city’s air traffic.
Promoters of Bangalore International Airport Ltd (BIAL) are believed to be going in for a temporary capacity expansion with plans of a dedicated low-cost terminal. TOI had reported on June 13 that there were some plans for a low-cost terminal as part of the airport’s temporary expansion plans.
“BIAL officials told us in confidence that they will build two temporary terminal blocks on either side of the existing terminal — one a low-cost terminal and the other to handle international operations,” said a senior airline official, who requested anonymity.
A BIAL spokesperson, however, told TOI that at this point “there is nothing concrete that we can confirm. It (low-cost terminal) could be an option going forward but nothing has been finalized.”
A low-cost terminal can benefit the traveller and the airline. According to aviation experts, while airside charges such as landing and take-off would remain the same, airport-related terminal charges such as office, check-in counter rentals, as well as the passenger service charge are typically 50% less than what a regular airport terminal charges. Even the User Development Fee (UDF) and the passenger service fee could be about half of what would be charged at the existing terminal. A low-cost terminal, however, will include no aerobridges, no transit facilities, fewer retail shops and a terminal shell stripped off all glamour.
Some industry observers are sceptical about any significant new capital infusion into the new airport. According to sources, the airport’s private consortium members such as Siemens Projects Ventures, Zurich Airport and L&T are disappointed that the UDF has not yet been imposed, and will not come with fresh funds until substantial returns have come from UDF and other charges.
EasyRide
BIA promoters contemplating temporary capacity expansion with plans of dedicated low-cost and international terminals
A low-cost terminal cuts both ways: terminal charges such as office, check-in counter rentals and passenger service charge are 50% less than what a regular airport terminal charges. This, in turn, benefits travellers as well
Flip side: Budget terminal won’t have aerobridges, transit facilities, fewer retail shops. Terminal shell devoid of glamour

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