An official study by the Airports Authority of India assesses the annual passenger capacity of HAL Airport at 8 million passengers. 6.5 million domestic terminal and 1.5 million international terminal.

This is contrary to popular belief of 3.5 million passengers.

According to Mr. B.R. Sena, General Manager, AAI, Bangalore, the figure of 3.5 million is based on extremely old assessments. AAI has added the international terminal building, and increased the size of the existing domestic departure terminal since then.

Mallya rethinks overseas plans
AVIATION CRISIS DEEPENS
Manisha Singhal / Mumbai June 28, 2008

San Francisco may get delayed, New York on ice.

Two months before its maiden overseas flight was to take off, billionaire Vijay Mallya's Kingfisher Airlines has decided to rethink its whole strategy of flying abroad.

"Due to the increase in crude oil prices and no signs of stability in the market, we are re-evaluating all our plans for international operations, keeping in mind costs and route network," Kingfisher Airlines Executive Vice-president Hitesh Patel said in reply to a questionnaire.

The airline was scheduled to launch its international operations with a Bangalore-San Francisco service on August 27. Now, informed sources said, the airline is re-evaluating whether it should launch the service or defer it for a few months. A final decision will be taken in a day or two.

The inaugural flight to San Francisco was to be followed with flights to other destinations like New York, London and cities in South-East Asia. It is now learnt that Kingfisher Airlines has decided to put on hold its plan to fly directly to New York later this year.

The sources said that the sharp rise in aviation turbine fuel prices, the slowdown in international travel and the uncertainty in the aviation market (many US carriers have gone bankrupt) have impacted Kingfisher Airlines' overseas plans.

What makes it ironical is that Mallya had lobbied hard in New Delhi to get the norms for flying abroad relaxed so that his brand new airline could launch international flights.

While the government rules stipulated that an airline needs to have five years of domestic experience before it can mount overseas flights, Mallya wanted it to be cut to three.

He had even toyed with the idea of starting an airline called Kingfisher in the US and start services to India to circumvent the regulation. But the issue got resolved when he acquired Air Deccan last year, which has the required experience.

The airline has already taken delivery of its first Airbus A330 wide-body aircraft for international flights and is to get another ten aircraft (which also includes A340s) by the end of this year.

Some analysts said the Kingfisher Airlines decision could have been prompted by the experience of its arch rival Jet Airways. Earlier in the week, the Naresh Goyal-controlled airline had declared a loss of Rs 221 crore for 2007-08, two-thirds of which came from international operations.

Source : The Business Standard

Paramount Airways adds new routes to its network
Will enhance operations from 62 flights to 66 flights a day in the following weeks
By TBM Staff | Chennai

Madurai based, Paramount Airways is planning to enhance its operations from 62 flights a day to 66 flights a day in the following weeks. The new routes include Bangalore-Vishakapatnam (direct), Chennai-Vishakapatnam (direct) and Chennai-Tiruchipalli (daily). Paramount Airways will also double the frequency of its flights on the Chennai-Tiruvananthapuram route. The airline also plans to launch flights on Chennai-Pune route by July end or first week of August this year. It will induct two new Embraer aircraft in its fleet by end of next month, taking its fleet size to nine. The airline is expanding its route network at a time when most carriers are cutting routes to reduce losses on account of the rising cost of Aviation Turbine Fuel (ATF).

According to M Thiagarajan, Managing Director, Paramount Airways, they have not been affected due to the rising ATF prices, since they do not cater to the train passengers like most other low cost carriers. Paramount Airways, which caters to the top end of the market feels, that the price elasticity of their customers is better and an increase of Rs 500 or Rs 1,000 in the fares does not affect its target group. As per the Ministry of Civil Aviation (MoCA) statistics, Paramount Airways recorded the highest seat factor for May, 2008. The seat factor for Paramount was 81.2 per cent, while that for Air India (domestic), Jet Airways, Deccan and Kingfisher Airlines was recorded at 61.2 per cent, 73.9 per cent, 71.5 per cent and 70.1 per cent respectively.

Source : TravelBiz Monitor

Chennai’s Anna International Airport, to commence work on second domestic terminal within two months
Residents oppose expansion of existing airport
By Lakshmi Vishwanath | Chennai

Chennai’s Anna International Airport, will commence work on the construction of the second domestic terminal, within the next two months and is expected to be completed in 28 months. “It will have two-level terminals with departure area on first floor and arrival area on ground floor covering 67,000 sq. meters. It will also have three aerobridges, Common Use Terminal Equipment (CUTE) terminals and other state-of-the-art facilities,” informed Dinesh Kumar, Airport Director, Chennai International Airport. Further, an aerobridge will be added to the international arrival terminal, which is expected to be completed by the end of 2008. Apart from this, four aerobridges will be constructed in both, domestic and international terminals.

The Airports Authority of India (AAI) is planning to invest Rs 1,800 crore, for extending the second runway of the existing airport and overall expansion. The Government of Tamil Nadu is still in the process of acquiring land for this extension, partly owing to protests from residents, whose lands are within the area set aside for acquisition. According to the residents, expansion of the airport will cause floods during rainy season. Excess water from the Chembarampakkam Lake (which is seven km near the proposed site) that is let out into the Adyar River causes floods in the airport land every year. The extension of the second runway across the Adyar River is expected to cause more floods in localities close to the airport. According to official sources, from an annual growth rate of 11 per cent in 2001-2002, passenger movement in Chennai has shot up to 51 per cent in 2006-2007. The international passenger traffic handled by Chennai airport in 2006-07 was 2.80 million compared to 2.60 million in 2005-06.

Source : TravelBizMonitor

BIAL to raise $200 mn., eyes valuation of $2-2.5 bn
Boby Kurian, Rajesh Unnikrishnan & Peerzada Abrar BANGALORE/MUMBAI

THE operator of the newly-opened Bengaluru International Airport is seeking a valuation of up to $2.5 billion to raise about $200 million in equity to fund the second phase of the airport’s development.

The valuation of Bangalore International Airport Ltd (BIAL), which sources put at as high as Rs 10,000 crore, or about $2.3 billion, could make it among the most valuable privately-owned domestic aviation assets. This would better the three-month-old Hyderabad Rajiv Gandhi International Airport, majority owned by GMR Group, which is estimated to be valued at $1-1.5 billion.

BIAL—40% owned by Siemens with L&T, Unique Zurich, Airports Authority of India and KSIIDC, a Karnataka government agency, holding the rest—is exploring the option of a private placement, among others, to raise part of the equity for the proposed Rs 2,500-crore expansion. It is believed that the company is exploring various possibilities and no investment bank is involved in the process.

A source said the company was seeking valuation in the range of $2-2.5 billion, leading to a possibility of 8-10% equity placement for raising over $200 million. While BIAL CEO Albert Brunner said the information on fundraising through private placement was not true, one of the investors confirmed to ET that all options are being explored.

Sources said private placement was being mulled as the company needs to shore up its equity base to go forward with fresh investments. BIAL’s current investment of Rs 2,470 crore has been funded 65% by debt, 16% by equity, 14% by support from the Karnataka government, while internal accruals and security deposits made up the rest.

The airport, which began operations just over a month ago, is expected to handle some 12 million passengers in the current year. With Bangalore’s air passenger traffic consistently beating forecasts, BIAL is planning for a second runway, entailing investments in the next 3-4 years. BIAL originally envisaged the equity component making up about 23% of the overall project cost, which was revised upwards twice from Rs 1,412 crore.

Sources said that if the government partners drag their feet on infusing fresh equity, the private promoters may have to look at the option of diluting a part of their shareholding at a significantly high valuation.

The state government is currently lobbying to reopen the old HAL airport, which was closed down in line with the concession agreement with BIAL. “With infrastructure valuation holding firm in the midst of a market meltdown, some investors may be open to the idea of cashing in a part of their equity,” a source said.

However, it is believed that the shareholder agreement has some binding clauses on the quantum of stake dilution by the promoters and for the protection of the government shareholding for a minimum period. The exact contours of the pact could not be independently ascertained.

Source : The Economic Times

In my April article "Beware .... Pedestrians" I had highlighted the need for pedestrian safety and over-bridges. The closing line in that article was "The last thing we all want to see, is a repeat of the recent Mysore Road incident, and a major dharna blocking traffic for hours on end, on the only decent access road to the airport."

This is the story on the cover page of The Deccan Herald, of today.

Locals block road to airport after mishap
Bangalore, DHNS:

Trouble erupted on the road to the Bengaluru International Airport on Tuesday night after an airpot taxi ran over a pedestrian, Dodda Thimmaiah (55), near Betta Halasur in Chikkajala police limits...

After finding Thimmaiah dead around 8 pm, irate locals stoned several airport taxis and blocked the road for over an hour. All traffic to and from the airport ground to a halt. Police had a harrowing time in reaching the spot as the nearest point — the City — from where they could make it was 9 km away. Once the cops arrived, normalcy returned and traffic resumed.

On Sunday last, another airport taxi was involved in a fatal hit-and-run case. The police have decided to strengthen patrolling on the road.

Almost immediately after BIAL opened, accidents have become a daily norm on NH-7. Despite advice to the contrary, the agency in charge, NHAI, chose to ignore this issue, and Bangaloreans are paying for it, and forcing an already over-stretched police force to manage the hopeless situation.

The BMLTA will address this lack of proper coordination, and it will behoove the Chief Minister of Karnataka to strength the agency.

In the meantime, I can only request my fellow Bangaloreans, to please drive with more care and empathy. Saving 5 minutes is not worth risking anyone's life.

On Friday, 20-June-2008, I took a flight out of BIAL airport. As my pictorial essay shows, the hard work, by the stake holders at BIAL, is showing results, in the form of significant improvements.

Getting to the airport
While the distance to the new airport is significant, I have always maintained that connectivity to the airport was not a major problem. I left Koramangala at 08:30am, driving my Hyundai i10. I was at the airport terminal by 09:45am.

Despite maintaining a comfortable pace, I encountered a hair raising experience with a pedestrian running across the highway. The many policeman on the road, were just bystanders, enjoying the life and death drama. I have voiced my concerns about a lack of pedestrian over-bridges in an earlier article (read article), and I am informed that there is on average 1 major accident or death everyday on the NH-7.

Arriving, check-in, and security
I was met at arrival by a very senior official of BIAL. I am deliberately keeping his name confidential, but I extend my thanks to him for all the courtesy.

While he went to the CISF security office to arrange an apron pass for me, I went ahead with check-in. Two of the departure doors were manned. The CISF guard checked my ID card (which CISF in Mumbai did not bother with, on my return leg). The check-in hall was quite empty and there was a small check-in queue. The folks at Kingfisher are very efficient. I did notice, that most airlines logged in to the CUTE terminals, and hence the stations displayed their airline, but did not staff them. I was informed that the morning peak period was over.

Met up with the BIAL official and we proceed up the escalator, and through the security check. CISF have implemented a past suggestion of mine to use 1 DFMD to service two physical check stations. We both expressed exasperation at the CISF insistence on using DFMDs, since there was a 100% physical check and frisk, which renders the DFMD check redundant. But then the Bureau of Civil Aviation Security is not known at the sharpest knife in the already dull bureaucratic block.

Also, all the women's lines were on one side, and there were hardly any women. So while men were waiting, the CISF female lines and guards were sitting idle.

I have suggested to CISF in the past to have a mixed line for the women. i.e. one DFMD serving one female check station and one male station.

The Apron
After leaving my carry-on bag in the BIAL official's office, we went down to the departure baggage make-up area, and it was a hive of activity. It is still is capacity constrained, a weakness in BIAL capacity.

At the tarmac we could see all the vehicles buzzing around. The worst were the old, decrepit tractors of Jet Airways and Indigo. I was informed that these polluting tractors were not permitted inside the baggage area. So they bring the luggage trolleys till the building entrance and then the electric tugs take over. BIAL has imposed a July 31st deadline on removal of these smoke belchers. I can understand, why BIAL is upset at the airlines' insistence on doing their own handling. A lot of duplicated equipment was cluttered all around the tarmac lying mostly unused.

A major reason for week 1 chaos at BIAL
I also discovered one of the main causes of the chaos that plagued the airport during its first week of opening (which I subsequently confirmed through other sources at the airport). Apart from the un-preparedness of Globe Ground (GG) and AI-SATS, a major contributor was India's "largest airline". This airline did not sign-up with any of the ground handlers, and thought they would do it themselves. 24 hours before the airport opened they realised they would be unable to, and pressured one of the ground handling agents to do the handling. Net result, insufficient and untrained staff, major disruptions and heaps of misery on everyone.

The official had to go and welcome Kingfisher's first Airbus A330 VT-VJK (read story)which was arriving. So he escorted me to the elevator and soon I was back in the departure hall.

The Departure Hall
The departure lounge was fairly empty. With seating available. Restaurants and shops were buzzing. The restrooms are small, with acceptable cleanliness.

I chose to look around, and chat up with the airport staff, and ask them their opinions. They all felt that the airport is slowly coming around. It is still not a great place to work in, but significantly better then when it opened. Their daily commute of about 80km was the biggest source of displeasure, despite the free transport provided by their employers.

Most airlines are experiencing a steep drop in regional passenger traffic. Flights to Chennai and Hyderabad, which used to be packed, now carry only about 15~20 passengers. There was a sense of despondency.

The FIDs (Flight Information Displays) still need improvement. They are too small, forcing passengers to get really close to read.

And they are still only in English. No Kannada or Hindi.

Observe the speakers. If you recall, in my visit report before the airport opened, I commented about the microphones at each gate, that would provide localised boarding announcements. Boy, was I wrong. Every little detail of every flight is blared over the speakers. Coupled with the poor acoustics, it is not a pleasant experience. BIAL should force the use of the "local" gate announcements concept.

Many departing passengers took time to grab something to eat. The long trip from town, does make you hungry. The restaurants offers decent food, but other passengers told me that RGIA Hyderabad food was significantly superior.

The incoming flight was about 5 minutes late, and the aerobridge operators took some time to attach, but the Kingfisher staff rushed the Globe Ground staff through their aircraft turn around, and we were boarded and took off on time. A short taxi, and soon we were airborne.

The departure experience was good. Most of the issues have been addressed, corrected, and operations stabilised.

The Return
We landed without any delay. For some reason the aircraft was not exited on a rapid exit, and so we went for a long taxiway tour of the airport.

After parking at a remote bay, despite almost a month since the airport opened, the Globe Ground crew took several attempts to attach the truck mounted ladder. I thought they would have become proficient by now, but obviously they need more experience.

I was informed that airlines preferred remote bays to "contact" (aerobridge) gates, since the aerobridge operators took even longer to attach.

We were brought to the terminal in a combination of Ashok Leyland's version of the Cobus, operated by Globe Ground, and Vayu Vajra Volvos. Due to the layout and regulations of the apron, we had to take the royal tour. This also explains why the bags take about 15 minutes to come.

Baggage Claim
We arrived to see a cleaning machine busy cleaning the floors. The airport looked bright and like a shining jewel against the darkness of the night.

The baggage came within 5 minutes of our arriving at the terminal. Passengers collected their baggage and dispersed within 10 minutes of our arrival in to the terminal. Good show by Globe Ground and Kingfisher.

On the international side, things were not so good. This scene is when only the Singapore Airlines flight has landed. The main crush of European arrivals had not yet arrived. The bags were coming very slowly. Obviously the Customs X-Ray inspection of incoming bags was slowing things down.

After exiting the baggage claim hall, I walked across till the glass divider, and peeked in to the departure hall. Compared to my departure, it was quite full, with all the international passengers waiting to check in.

Exiting the terminal

On exiting the terminal, one is immediately confronted with the familiar line of drivers with the name placards waiting for their guests.

Private taxi drivers lurk like hungry wolves waiting to pounce on arriving passengers en-masse and offer "taxi" services. In the absence of any city police, the BIAL employees were powerless to prevent this predatory and unwelcome practice. I could not find a single policeman at the airport. Only CISF, and their authority stops at the terminal door.

There was a reasonable line of passengers waiting at the departure doors to enter the airport, and many passengers who apparently arrived early took the time to occupy the seating outside the terminal meant for visitors.

Others took to sitting on the concrete pillars and catch-up.

Cars were parked three deep on the drop off lanes, till the parking contractor's van came with its siren blaring forcing them to move.

Vayu Vajra and the Bus stand
I headed out to the Vayu Vajra stand, still being accosted by offers of "taxi service", and the bus stand stood out like a shining beacon. The bustle knocked the picture, my apologies.

An oasis of light in the desert of darkness from the bus stand. The BMTC bus drivers were very helpful, and there is schedule chart. I observed that there is an over abundance of service to Hebbal. Also there are only VV services to Hebbal, Electronics City and Kempegowda bus stand. No economical Suvarna service to these 3 destinations.

I just missed my VV back to Koramangala, and would have to wait another hour for the next service. So I trudged back to the terminal, and linked up with the AirLift folks. It was a slightly long walk to the P1 parking, past the bus stand, but I was soon in a comfy Toyota Innova, one of 50, and zipping back to town.

My fellow passengers were Major Kapoor (now retired and running a team building education service), and Dr. Balaji (an ENT surgeon and now a tele-medicine expert).

During the trip I sought their views. Like me, they both felt that BIAL has improved significantly, including bathrooms. They also felt that Hyderabad RGIA,was far superior to BIAL, in almost all aspects. Unlike RGIA, BIAL shows effects of cost cutting, which according to Major Kapoor makes "BIAL lack the 'feel good' factor of Hyderabad".

Conclusion
Comparisons aside, I am highly impressed by the improvements at BIAL. Without doubt, BIAL terminal is a superior product compared to the AAI terminal at HAL, and a facility Bangalore can be proud of. While there are areas, like ground handling and cargo, which require improvement, all the operations teams at BIAL and stake holders can be rightfully proud of their hard efforts, and its results at the airport.

The total crash in regional traffic is alarming, and it will behoove BIAL to consider operations at HAL, in a larger public interest. The Governments of India and Karnataka, should strongly consider letting BIAL and AAI continue their partnership, and together they can operate the terminal facilties at HAL airport, while letting the hyper-efficient HAL ATC operate the air traffic, giving Bangalore, the best of both worlds.

All images are my copyright. The web album is here.