BIAL to go in for temporary expansion

BIAL to go in for temporary expansion
Gets Defence Ministry Nod For Second Runway After Clearing Pending Technical Issues
Anshul Dhamija | TNN

Bangalore: Plans of Bangalore sporting a low-cost terminal at the new Bengaluru International Airport (BIA) are on the cards. TOI had reported twice in June its promoters, BIAL, were looking at a temporary expansion in which a low-cost terminal was in the reckoning.
Now, speaking to TOI on the sidelines of the launch of Deccan Aviation’s chopper services, Albert Brunner, CEO, BIAL said: “Before our second phase of expansion, we would like to have a temporary intermediate structure in place. We are evaluating plans of putting in place a low-cost terminal. But nothing is final.”
Brunner did not give any timeline in which this temporary expansion will happen, but said, “We will come to the media on the issue as and when we finalize upon it.”
An aviation expert said the benefit of a low-cost terminal is that 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 will be 50% less than what a regular airport terminal charges. “Even a user development fee (UDF), passenger service fee would be more than half of what would be charged at the existing terminal,” he said.
BIA’s second phase of expansion as per the masterplan which envisages a second runway and a terminal block is slated to come up in the next 3-4 years. The company has got a consultancy firm to guide it on its expansion plans.
“We will take the proposals for the second phase to the board in the next three months,” said Brunner.
BIA’s second runway, which is slated to come up on the south of the airport, had run in to turbulence as the approach path for landing aircraft was in line with the approach path of the Yelahanka air base’s runway. “We have obtained an NOC from the ministry of defence,” said Marcel Hungerbuehler, COO, BIAL.
In respect to the UDF of Rs 675 (plus taxes) that the passengers will be charged after the airport completes three months, Brunner said: “In the next ten days we will submit the final audited cost of the project to the civil aviation ministry, after which a UDF will be decided upon. But for the airport to break even in the next five years, we need to charge UDF of Rs 675 for domestic passengers.” Currently, UDF of Rs 1,070 is being charged to international passengers.
The UDF will help bring in confidence to the three promoters — Siemens Projects Ventures GmbH, Zurich Airport and L&T — to go to banks and raise debt for funding the second round of expansion.