The airport operators at Delhi and Mumbai airports have a mantra as far us passengers go. "Heads I win, tails you lose"

After a messy process, in May 2006, the Delhi Indira Gandhi International Airport (IGIA) was handed over to the Delhi International Airport Ltd. (DIAL) consortium led by the GMR group, for modernising, handling and management. GMR won the bid for by promising to share 46% of the airport’s top-line revenue with the current owner Airports Authority of India (AAI).

DIAL estimates for their master plan was Rs 8,975 crore ($1.8 billion). Funds were to be raised by a combination of equity, borrowings and Rs. 2,739 crore ($476 million) refundable security deposits on commercial property development of what was called a “hospitality district”.


Through the middle of 2006 till the latter half of 2007, DIAL tried, what can only be charitably described as a very devious method, to reduce the revenue paid to AAI as part of their 46% revenue share. In short, DIAL demanded astronomical deposits upfront from bidders for the real estate project, in return for a reduction in long term rent, and then contended these deposits were not income, and therefore need not be shared with AAI. For full and gory details I refer you to Sunil Jain’s article “Mr. 20 per cent” in the Business Standard. Since this scheme would have cut AAI’s revenue share by almost half, it confronted DIAL and forced the consortium to put its plans on hold.

This delay cost DIAL dearly. By the time all disputes were settled in late 2007, the property market collapsed, and along with it the grandiose plans of raising the required Rs. 2,739 crore from security deposits, without which the bankers would not lend any more money.

Hanging the upcoming 2010 Commonwealth Games as a Damocles sword, DIAL quickly ran to their friends in the Indian Civil Aviation ministry for help, and help they did.

On February 10, the government approved a levy of an "Airport Development Fee" (ADF) by DIAL. From March 1, we passengers are forced to pay ADF at the rate of Rs 200 per domestic passenger and Rs 1,300 per passenger travelling abroad, totalling a whopping Rs. 1827 crores ($366 million) over three years. This, keep in mind, is on top of a recent 10% increase in fees the airport charges airlines, which is ultimately passed on to us passengers.

In a "me-too" move, fellow brown-field airport operator, GVK led Mumbai International Airport Ltd. (MIAL), seized the opportunity to gain a bonanza, and has obtained approval for levy of an ADF, again, on top of a recent hike of airport charges levied on airlines, which, by the way, was used by DIAL as justification for demanding a hike.

In a totally unjustified move, the government today approved levying an ADF at Mumbai Chhatrapati Shivaji International Airport (CSIA). Rs. 100 will be charged from every outbound domestic passenger and Rs. 600 from each international passenger, effective April 1, 2009, totalling Rs. 1,543 crores ($309 million) over the next four years.

Forget the fact that MIAL is facing no "commonwealth games" type deadline, or that they have till date, spent less than one-third of what DIAL has already spent on developing the airport.

Unfortunately, this is a slippery slope the Government put itself and us passengers on, when they approved ADF for DIAL. They have no grounds for refusing MIAL's demands.

The justification offered by DIAL, MIAL, and their friends in the ministry, is the ADF will be used to develop aeronautical assets which will be transferred back to AAI upon completion of the lease. Never mind that the lease is for 58 years, and passengers are being asked to pay for future assets that they may not use, and this asset creation is precisely what the property development concession rights were meant to cover ???

When both these airport operators bid for the respective airports, there was no condition or plan for the levy of ADF. It was never part of the initial bidding conditions, process or bid documents.

Had the property market not collapsed, DIAL and MIAL would have made a killing on the property development. In such a scenario would DIAL and MIAL have paid an amount equal to the ADF back to passengers as they share of gain? If the economic tide has turned, it a business risk and ultimately DIAL's and MIAL's problem.

It all boils down to DIAL and MIAL raising the collateral money insisted by the banks who have agreed to lend the remaining amount. Unfortunately the shareholders of DIAL and MIAL do not have the financial strength to do.

They have a means to raise the funds, like any other company in the world. They can sell their shares and raise equity. So DIAL and MIAL can sell shares to us passengers against the ADF.

If airport operators want us passengers to bear their share of the risks, it is only fair that we be given our share in the rewards.

February 9, 2009, 10:00 IST (04:30 GMT)

TV channels are reporting that an Air India Airbus A321 performing flight IC866 was involved in a rejected take-off/near miss at Mumbai Chhatrapati Shivaji International Airport earlier this morning.

The flight had commenced its take-off run, when a helicopter which was given permission to land, strayed across the runway to land on the helipad. On sighting the helicopter the flight crew of IC866, rejected the take-off, applying emergency braking.

All passengers on board, estimated at 148 are safe. The tires of the aircraft require changing which is being done right now.

Initially it appears a fault of the air traffic control, which appears to have given permission to the helicopter to land, while at the same time, giving permission to the Air India flight to take-off.

Update 1 - 10:55 IST (05:25 GMT)

The shocker. The army helicopter was part a three helicopter convoy of Indian President Pratibha Patil.

The presidential convoy was conveying the President from the Governor's mansion, The Raj Bhavan, along with the top most leadership of the state of Maharashtra, to the airport. Due to security procedures, it is unknown whether the President was on board the chopper which strayed on to the runway.

Clearly a major mishap has been avoided, and there is bound to be a major investigation.

Information from aviation experts indicate the plane was at V-1 speed (around 100 knots). This is why the plane was able to perform a "rejected take-off", with the autobrake system kicking in. In another few seconds, the plane would have crossed the V-2 threshold, at which point the aircraft is travelling just to fast for it to stop on the runway. That would have surely resulted in a disaster of epic proportions.

The wheels of the Airbus A321 aircraft jammed after the rejected take-off, and the aircraft tyres burst due to the excess heat caused by the emergency braking. It has been taken back to the terminal. The passengers have been dis-embarked and are in the terminal. Arrangements for an alternate aircraft are being made.

Update 2 - 13:25 IST (07:55 GMT)

A Mumbai Airport official told news agencies.

"At around 09.00 hrs today, an Air Force chopper landed on the same runway from which Air India flight IC 866 (with 150 passengers on board) was taking off for Delhi, forcing the pilot of the plane to abort take off at the last minute,"

However there is some confusion. News reports claim

the Air India aircraft was taxiing to reach the main runway for the take off when the Air Traffic Control talked to the pilot regarding the helicopter. The pilot applied the brake to bring the aircraft to a halt

Whereas, all reports indicate a high speed take-off reject, resulting in the nose wheel tyre blowing out, indicating the pilot had commenced the take-off run and was not taxiing.

Credit is being given to the alertness of Captain SS Kohli, pilot of IC 866, who aborted the take off. Captain Kohli said,

"The the chopper and our aircraft got the clearence from the ATC at the same time. The ATC had lost contact with the chopper."

"The chopper just landed without taking a landing clearance. I cannot say much more,"

Meanwhile, an official spokesperson of the President told news agencies that "Everything is perfectly fine. The President was attending her normal functions."

As per Timesnow TV.

A fleet of three helicopters including the one carrying Patil, along with Maharashtra Governor SC Jamir and some other dignitaries, had taken off from Mumbai's Naval base 'INS Kunjali' and were on their way to the airport since the President was to fly to Gondia by her special Indian Air Force Plane (IAF) plane to attend a function.

A probe into the incident has been ordered by the Directorate General of Civil Aviation, the sources said. A senior DGCA official is coming from New Delhi to Mumbai to join the investigation, they said.

An IAF spokesman said, "the pilots of the chopper had followed the instructions from Bombay approach meliculously. The Presidential entourage was cleared to take off from INS Kunjali and land at Santa Cruz between two taxiways". An inquiry has been ordered by the IAF into the incident, he said.

While full information is not yet available, this appears to be the most likely situation based on past knowledge, historic traffic patterns, and information.



Update 3 - 17:00 IST (11:30 GMT)

The Indian Directorate General of Civil Aviation (DGCA) released a statement at 16:10IST ((10:40 GMT)

Mumbai Airport, the busiest airport in India was witnessing heavy air traffic and operations today morning. The ATC Mumbai was aware of the Presidential visit and were watching the approach movement of the Presidential convoy of helicopters. At that time an aircraft of Air India was on the active runway-27. The ATC, noticing movement of the aircraft on the runway, asked the aircraft to immediately apply brakes and exit through the taxiway. The aircraft exited immediately and the helicopters landed safely.

Director General Civil Aviation has ordered an investigation of the incident under rule 77 and appointed Jt. DGCA as the Inquiry Officer for the purpose of carrying out the investigation. Jt. DGCA has reached Mumabi and started investigation proceedings.

Considering this incident involved the President of India, the poor controller on duty is in for a very rough time.

Update 4 - 20:00 IST (14:30 GMT)

The Air India aircraft is registration VT-PPF. An Airbus A321-211 construction number 3340, it did it first test flight on December 5, 2007, and was delivered by Airbus on December 14, 2007. It is powered by the CFM56-5B3/3 engines.

Image copyright Flickr user Pallav105

The Supreme Court today stayed the Karnataka High Court judgement that quashed the decision of Bangalore International Airport Ltd. (BIAL), operator of the Bengaluru International Airport at Bangalore, to award the duty-free shops contract to Nuance Group AG of Switzerland and Shoppers Stop.

On December 19 2008, on a plea by Flemingo Duty Free Shops Pvt. Ltd., the Karnataka High Court had set aside the award and directed BIAL to reissue fresh tender documents within 45 days.

Dubai-based travel retail business company, Flemingo, which operates duty-free shops at airports and sea ports, had alleged that it was wrongly excluded from the tender for setting up duty-free shops at the new airport.

A bench headed by Justice K G Balakrishnan asked the parties to maintain status quo till February 16, the notified date of hearing.

Earlier, the apex court stayed the Bombay High Court judgement that had allowed a similar petition of Flemingo Duty Free Shops Pvt. Ltd. and quashed a similar decision of Mumbai International Airport Ltd. (MIAL), operator of Mumbai's Chhatrapati Shivaji International Airport, to award the duty-free shops contract to DFS India.

Both High Courts had held that MIAL and BIAL were a 'state' within the meaning of Article 12 of the Constitution.

Both the Nuance Group and DFS Ventures, Singapore had challenged the respective High Courts' rulings.

This case of significance to both airport's private operators. If the Supreme Court upholds the lower courts' decisions, it will require operators to follow public tendering processes, which airport operators feel will hamper their ability to make procurement decisions.

At a time when airport authorities in Singapore, Thailand, Korea, and Taiwan, are reducing their airport charges to stimulate air travel, travellers flying from Chhatrapati Shivaji International Airport (CSIA), Mumbai will pay more soon.

The Ministry of Civil Aviation (MoCA) has recently sent a letter to the GVK promoted, Mumbai International Airport Limited (MIAL), allowing the airport operator to increase aeronautical charges by ten per cent which in turn will be passed on to the passengers.

Aeronautical charges comprise Passenger Service Fee (PSF) currently at Rs. 225, and aircraft landing and parking charges. According to a report in Economic Times, certain sources informed that MoCA has allowed MIAL to increase aeronautical charges by ten per cent effective January 1, 2009. MIAL has already issued a circular in this regard to airlines. A ten per cent increase in airport charges will add to about Rs 35 crore to the airport’s total annual revenue.

Passengers can expect a similar hike at New Delhi's Indira Gandhi International Airport operator, GMR promoted, Delhi International Airport Limited (DIAL).

PTI reports, the engine of a Gulf Air Airbus A321 aircraft with 124 passengers and nine crew caught fire a few minutes prior to its take-off today, disrupting flight operations at the Chhatrapati Shivaji International Airport at Mumbai, for about an hour.

"The engine of the Bahrain-bound Gulf Air flight GF 065 caught fire just when it was lined up for departure," a spokeperson for airport operator Mumbai International Airport Limited (MIAL) said, adding that all the people on board the plane are safe.

The aircraft was scheduled to take-off at 19:21 (13:51 GMT)

Immediately, apron control and fire officials rushed to the runway and put out the fire, the spokesperson said.

As a result of the incident, two Air India flights scheduled to land had to make a"go-around" and circle in the skies for some time before the airport could resume full operations.

An Air India official said one of its Chennai-Mumbai flights was diverted to Pune in addition to a Delhi-Mumbai and Bangkok-Mumbai flight being forced to make a "go-around".

BIAL, the promoter of Bengaluru International Airport, has been making steady progress in streamlining operations, and increasing functionality and usability at airport, especially in the non-passenger areas, but BIAL had a litany of woes yesterday, which made for a terrible Friday, and left me shaking my head, commiserating with BIAL.

First, the Karnataka High Court ruled that the airport is a public institution, which has other ramifications for BIAL.

On a petition filed by Flemingo Duty Free Shops Limited of Mumbai challenging BIAL not considering their expression of interest to set up duty-free shops at the international airport, a division Bench, headed by Justice V Gopala Gowda, held that BIAL is an entity which comes under Article 12 of the Constitution and is subject to writ jurisdiction, consequently quashed the contract awarded to duty-free shops at the airport.

BIAL had said that as it was purely a private company, its actions were not subject to writ jurisdiction.

The court, while nullifying the contract given by the airport to Nuance Group AG of Switzerland for setting up of these shops, asked BIAL to redo the process from the expression of interest stage and complete it within 45 days.

This is a repeat of the June ruling of the Mumbai High Court against MIAL, the operator of Mumbai's Chhatrapati Shivaji International Airport. In that case too, Flemingo was the petitioner.

No doubt, the Supreme Court, is the next stop for this saga.

Second, at around 4pm, passengers faced a harrowing day at the airport, when the servers handling the check-in for Jet Airways and Kingfisher crashed. These two airlines handle over 65% of the total traffic at Bangalore, and Friday 4pm is probably one of the highest periods in the week. Passenger queues immediately built-up, as did tempers and angst.

As per the Deccan Chronicle

"But after the servers crashed, the two airliners’ started issuing boarding passes manually. The manual ticketing was time-consuming. Passengers protested against the long delays. Additional staff were deputed to handle the ticketing and the situation was soon brought under control. But it took an hour to get the systems up and running," sources said.

Congrats to everyone in reacting to the situation and resolving it quickly.

As if this was not enough, more trouble came in the form of a repeat strike by the drivers of Meru Cabs, who had gone on strike earlier this week.

As per the Deccan Chronicle

In addition, passengers arriving at BIA found there were no cabs to take them into the city after drivers of Meru cab services called a snap stir and suspended services, for the second time this week. Many passengers were seen boarding the Volvo bus service to the city. The drivers, had been assured there would be a revision in the stipulated daily collection when they had a meeting with the management last week.

According to that arrangement, the company provides the drivers with cars while the drivers pay the company Rs 900 per day irrespective of their revenue. This rate was revised upwards to Rs 1,200 from December 1 which upset the drivers.

The meeting to resolve differences on Friday was inconclusive, a Meru cab driver said. "Not only has the company increased daily fees, it has added 250 cars to the existing fleet of 500 which has affected our business. This angered us and we called for strike. We will resume only after our demands are met," said Krishna Murthy, a driver.

When contacted. a Meru company spokesperson said all Meru services are temporarily suspended and services would resume soon. He declined to comment on the deadlock with the drivers. Meru is a major operator at the airport and has bagged more than 50 percent of the transport business.

I remind passengers, that there are two more taxi operators at the airport, and the wonderful BMTC Vayu Vajra Volvo bus service. There is no need to panic. Just click on the "BIA Bus and Taxi" link on the top menu for full details.

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As per the Times of India, the "left luggage" facilities for transit passengers at the Mumbai Chhatrapati Shivaji International Airport, which were closed well before the 26/11 Mumbai terror attacks, still remain closed.

Airport operator GVK promoted, Mumbai International Airport Pvt Ltd (MIAL) had closed down the luggage rooms, where transit passengers could leave their luggage behind and go about their business around the city, citing high security threats to the airports. MIAL has now decided not to re-open the luggage rooms inside the terminal building.

Mumbai is the primary gateway for many international passengers to and from India. The economic capital of India, Mumbai is also headquarters to many of India's airlines like Air India, Jet, and Kingfisher. Mumbai airport has one the highest proportion of transit passengers in India. The lack of a "left luggage" facility is most felt here.

MIAL claims, "It is difficult to ascertain the contents of a bag inside the luggage room. We discontinued it due to security reasons". It is a legitimate concern. But, then I ponder; transit passenger bags are already security screened, and as a double precaution, the bags can be screened again prior to being placed in the left luggage room.

The time line provides some clues. The luggage room at domestic terminal was discontinued three months ago, the one at the international terminal was pulled down when part of it was used for reconstruction. It is well known that Mumbai airport has a space constraint, and is this one of the real reasons ? After all, the left luggage facilities do not bring in revenue commiserate with the space they use.

The security threats have provided the airport operator, GVK promoted, MIAL, legitimate cover for the non-availability of luggage room facilities, which poses a problem for transit passengers who have a significant time to spend between their flights. Most of them are unable to leave the airport. since they are forced to carry their luggage along.

MAIL claims that Mumbai airport would reopen the luggage room, but there is no definite time line, and for sure it does not seem to be happening any time soon. As per information, there are plans to make luggage rooms outside the terminals, once the revamp of the international terminal is complete.

As per the plans, the passengers would be required to drop their bags at the collection centre of the airline, from where it would be transferred to the room. The luggage would also be screened before it is deposited there.

MIAL sources indicate that they have issued a letter of intent to the vendor who would take care of this facility in the future, and that there are plans to do the same at domestic terminal. At domestic terminal, luggage rooms are likely to be located near the car parking.

In the meantime, I advise Mumbai transit passengers to contact their arriving and departing airlines. There is a provision of leaving the luggage with the airline.

DNA reports a group of drunk women caused chaos at the departure gate of Terminal 2C at Mumbai Sahar airport, early on Friday. They broke champagne bottles in their drunken stupor, forcing authorities to raise the alarm.

At about 6am on December 12, the group of five or six foreigners was waiting for a flight near the departure terminal. “They were scheduled to take a flight to Goa and were very drunk,” a Central Industrial Security Force (CISF) official said. “The women were carrying three champagne bottles in their hand.”

Following an altercation between themselves, the women began flinging the bottles at each other. “The corks of the bottles popped out, making sounds like gunshots,” the official added. CISF officials quickly intervened only to find pieces of broken glass on the floor. “The women then started shouting slogans like 'India is the best' and 'We love India'.”

Since it was not a security threat, no action was taken against the women, and they were let off.

I am wondering what happened to the rules about letting an inebriated person onboard an aircraft. ? The women should thank their lucky stars for Indian hospitality.

As part of its ongoing efforts to upgrade the runway system at Chhatrapati Shivaji International Airport (CSIA), Mumbai International Airport Pvt. Ltd. (MIAL) inaugurated a new taxiway N9 last week.

MIAL is trying to reduce the runway occupancy time by landing aircraft at CSIA. N9 which is located on the Northwest side of primary runway 09-27 will immensely improve runway efficiency. The location of this taxiway has been aptly designed (located at 2614 metres from the threshold of runway 09-27) to facilitate all wide-body aircraft to vacate the runway after landing with ease.

N9 will also be the first compliant taxiway for Code-F aircraft (such as A-380) at CSIA that requires the width of the taxiway to be 25 metres and shoulders 17.5 metres on each side. Its length is 180 metres. The first flight to utilise this taxiway was British Airways 119 from London.

With the two rapid exit taxiways, the extended parallel taxiway A4 and taxiway N9 in place, runway occupancy time for aircraft landing and taking off, is likely to be reduced considerably.