Albert Brunner says ciao, leaves Marcel to CeOver

Albert Brunner says ciao, leaves Marcel to CeOver
K R SREENIVAS


It’s a phase no Bangalorean will forget. A transition from a low-brow to a sleek airport, now called Bengaluru International Airport Limited (BIAL). So, one can’t really not notice another transition that is happening at BIAL: Albert Brunner has handed over the mantle of CEO to Marcel Hungerbuehler.
Meeting with Editors to share the moment on Wednesday, BIAL CEO Albert Brunner and the incumbent Marcel Hungerbuehler did talk about the coffers at BIA, down by Rs 150 crore to Rs 160 crore since the airport was inaugurated. Direct attributable reason: The User Development Fee (UDF) not being in place till recently. And the UDF fixed by the government being just Rs 260 against BIAL’s proposal of Rs 675.
Brunner admitted, “Yes, BIAL has written to the government for a bail-out package in view of the huge losses and discussions are on. We have not yet got a decision.’’
Brunner was candid to say that BIAL would have to review its expansion plan, taking into consideration traffic growth, projected traffic and investors’ interest. “Investors are hard to come by in a recessionary climate. And lack of support from government will not help’’.
However, Brunner and Marcel made it clear that BIAL would see a terminal building and a runway being added at the airport. It would, however, be time consuming and in the current climate, investors would take at least 12 months before they come on board. And it would take three to four years to complete the construction of the project. “Nobody can afford to expand beyond a point for the next 20 years,’’ Brunner added.
Marcel said Bangalore had witnessed a traffic growth of 40 per cent, but going forward, one hopes it would stabilise at a consistent eight to nine per cent. Compare this with Europe which has reached saturation point, the growth is about one or two per cent.
How are you going to infuse equity? BIAL hopes to get a review of the UDF and then take it to the promoters to find the funds. “But let me tell you, no lunch comes free. The passengers have to pay,’’ Brunner kept harping. Has Bangalore lost an opportunity to be a South Asia hub? Brunner and Marcel were quick to point out that Singapore, Dubai and Hong Kong were very strong hubs.
It would be very difficult to break in. At best, Bangalore can compete with Chennai and Hyderabad. When we persisted to ask ‘So in a way Bangalore has lost the edge and certainly an opportunity’, the reply one gets not just in terms of words but in body language is pretty obvious.
India could have been a hub between the Far East and Europe. But a lot of water has flown since and probably the bus, nay the flight, has been missed.
Marcel has his task cut out in his two year stint as CEO. Brunner is going away on a sabbatical to South America before he takes over as CEO of an airport in that country in which Zurich International Airport is a partner, later this year. Thank you Brunner for building an airport with good intentions