BIAL approves redesign of international airport

The board of the Bangalore International Airport Limited (BIAL) on Monday in-principle approved the redesign of the new international airport. However, the board has sought certain clarifications from the equity holders and the final decision is expected in the next few weeks.

In the absence of Infosys chairman N R Narayana Murthy who resigned as chairman of BIAL, the board meeting was presided over by Sanjay Narain, joint secretary in the Union ministry of civil aviation.

According to a BIAL press release, the redesign of the airport project is based on the revision of traffic forecast done in June 2005. The study has estimated the traffic flows for the new airport on the "airport opening year" (2008) at 6.7 million passengers from the 4.5 million passengers estimated earlier. Subsequently, the figure is expected to climb to 8.5 million passengers in year 2010, the release said.

The redesign will see an increase in the size of the passenger terminal building, number of aircraft stands, more taxiways, passenger boarding bridges and the main access road enabling the airport to match the expected traffic in the coming years, the release added.

The board of BIAL also cleared the partner evaluation for ground handling and cargo as proposed by the management. The BIAL will select two independent partners for cargo and ground handling each. "The policy on civil aviation is expected soon. Therefore, the BIAL has decided to wait with the next steps in ground handling," the release added.

However, the agreement with the selected partners in cargo should be concluded by the end of this month. In cargo, the three first ranked parties are the consortia consisting of Air India/ SATS, Bobba Group/Menzies Aviation and Swissport / Cargo Service Center.

The second ranked consortia will be requested to commercially match with the first ranked consortia. In case the second ranked consortia confirms to do so, BIAL will sign with the two parties as proposed. In case the agreements cannot be concluded with the two first ranked parties in a reasonable time, BIAL will take up negotiations with the third ranked party, the press release said.

The BIAL is a special purpose vehicle that will design, build, own and operate the first greenfield private sector-owned and operated airport in India. While private promoters hold 74 per cent stake in BIAL, the state holds the remaining 26 per cent.