The Indian government has approved a ten per cent increase in aeronautical charges at 84 airports across India operated by the state owned Airports Authority of India (AAI).

This at a time when airports across Asia and in many parts of the world, are reducing airport and passenger charges to stimulate air travel.

These charges include landing, parking and terminal area navigation fees that airlines pay for using airports. Naturally, one should expect the airlines will pass on the costs to us passengers, in the form of higher fares, but at a time when airlines globally are in meltdown, will they be able to ? Conveniently, the ministry expect airlines to absorb the increases. They are already bleeding so what difference will a little more make.

Since the start of this year, the Civil Aviation ministry headed by Mr. Praful Patel, has approved increases in aeronautical charges at the now privately operated brownfield airports at Mumbai and Delhi, which account for close to 60 per cent of India's total air traffic.

The three privately operated greenfield airports at Bangalore, Kochi, and Hyderabad can also be expected to increase their charges, since they are allowed, by contract, to charge what AAI charges.

The government is also expected to clear AAI's proposal for charging development fees from departing passengers at places like Thiruchirapalli, Trivandrum, Goa, Amritsar and Ahmedabad. Reflecting a warped thinking at the ministry, as demonstrated by the exorbitant fee differential between domestic and international passengers, we can be certain that airports with higher international traffic will have their development fee proposal cleared cleared first.

Airport developers claim a resource crunch in implementing their development plans during the current economic slowdown. The sharp fall in passengers and freight have affected revenue and business plans. Thanks to its lopsided planning, the government has created monopolies and cartels out of airports. Let us not forget, this is the same government which screamed "cartelisation", just two weeks ago, when private airlines raised their fares.

Risks are inherent in any business, and in a competitive scenario economic downturns are great drivers of efficiency maximisation, leaner organisations and cost effective operations.

Indian passengers have no problem paying for facilities -- once they are built; but asking us to pay for them in advance and cover the business risks of these monopoly airport operators is not acceptable. Instead of protecting passengers, the government is only aiding this huge cartel of monopolies called airport operators.

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.

In a bid to strengthen the financial position of Air India, the Indian government yesterday substantially increased the allocation for its holding company, National Aviation Company of India Ltd. (NACIL), by about Rs 4,029 crore (approx $806 million) in the interim Budget 2009-2010. Almost the entire increase in allocation for the Ministry of Civil Aviation (MoCA) was cornered by NACIL, with the airline being earmarked Rs 8,165.64 crore ($1.633 billion), up against the revised estimate of Rs 4,136.89 crore for 2008-2009.

MoCA received a total allocation of Rs 12,164.76 crore, compared with the revised 2008-2009 estimate of Rs 7,490.06 crore, a hike of almost Rs 4,675 crore. The move came in the backdrop of Air India seeking enhancement of its equity and a soft loan to meet the growing expenditure on its ongoing aircraft acquisition programme of buying 111 planes.

A provision of Rs four crore was also made, for salaries and other administrative infrastructure was also made in the non-plan budgetary allocation of the Ministry for the newly-created Airport Economic Regulatory Authority (AERA), whose Chairman and two members are yet to be appointed.

The Government has approved the levy of Development Fee (DF) by the Delhi International Airport Limited (DIAL) @ Rs.1300/- per departing international passenger and @ Rs.200/- per departing domestic passenger with effect from 1 March, 2009. The DF which is being levied purely on an adhoc basis, is inclusive of all applicable taxes and is for a period of 36 months only.

This approval shall be reviewed specifically upon the following milestones:

• DIAL will submit final project cost estimates within 6 months of the commencement of the levy of DF, i.e. latest by 31 August, 2009. The project cost so submitted, including amount of contingencies, and their utilization shall be audited by an independent technical auditor to be appointed by Airport Authority of India (AAI) or as the Regulator / Government may decide.
• DIAL will undertake a review of the bidding process in respect of the hospitality district. They may approach the Government with the outcome of the review within 6 months of the commencement of the levy, i.e. latest by 31 August, 2009.

The approval is subject to the following conditions:-

• The final determination of levy may be made by the Government/Regulator upon compliance of the above two milestones.
• Following procedure monitoring mechanism shall be followed:
1. DF receipts would be deposited in a separate Escrow Account. Modalities of the Escrow Account may be decided by DIAL, with the approval of the AAI, atleast one week before the commencement of levy.
2. AAI and the Central Government would have supervening powers in respect of Escrow Account to ensure that all receipts are properly accounted for and are utilized only for permitted purposes. These powers may include stoppage of withdrawal by DIAL.
3. Presently, other capital receipts like equity and debt funds are channelized through another Escrow Account of DIAL as per OMDA requirements. The Independent Auditor appointed by AAI, presently verifies only the revenue as defined in Article 1.1. of OMDA and not the receipts of capital nature and utilization thereof. As a condition of this approval, DIAL would be required to subject such capital receipts and expenditure also to AAI supervision.
4. All accounting and auditing practices, as would have been applicable to AAI, will be applicable to DF receipts and expenditure by DIAL. The modalities in this respect should be worked out between AAI and DIAL, atleast one week before the commencement of levy.
5. The compliance in respect of the above issues will be furnished by AAI and DIAL to the Central Government on event basis as well as on a periodical monthly basis.

• It will be ensured that DF is utilized for the development of such “Aeronautical Assets” only, which are “Transfer Assets” in terms of OMDA.
• DIAL should report the collection and usage of DF on a monthly basis to Central Government / Regulator through AAI.
• The levy will be reviewed 6 months after commencement by the Regulator/Central Government and thereafter at such intervals as the Regulator/Central Government may decide.
• At the stage of final determination, Regulator/Central Government will ensure adequate consultation with the users.
• The amount collected through DF would not in any case exceed the ceiling of Rs.1827/- crores (NPV as on 1.3.2009). The ceiling amount would be exclusive of taxes, if any.
• The balance amount of Rs.1250 crores received as shareholders advance (i.e., Rs.1750 crores net of Rs.500 crores to be appropriated towards equity) would be retained by DIAL. Any escalations of cost would be met from the amount so retained. In case the cost escalation is less than the retained amount, the ceiling amount of Rs.1827 crores would be reduced by an amount which is equal to the difference between the retained amount of Rs.1250 crores and the amount representing project cost escalation beyond Rs.8975 crores.
• Rate and tenure of levy are premised upon the traffic projections and other estimates. In case due to actual figures being different than those estimated, the collections during levy period exceed the amount of Rs.1827 crores (NPV as on 1.3.2009) or any other amount which the Regulator/Central Government may determine, the excess amount so collected shall not be utilized, for any purpose whatsoever, without the prior approval of the Regulator/Central Government.

The Delhi International Airport Private Limited (DIAL) are undertaking modernization, development and upgradation of IGI Airport, New Delhi as per the approved Master Plan. DIAL had estimated that the Master Plan will be implemented at an estimated cost of Rs. 8975 crores. Requisite funds were to be raised through Rupee Term Loan, External Commercial Borrowings (ECB), Base Equity, Internal Accruals and Refundable Security Deposits (RSD) from Hospitality District (commercial property development). However, it has now been brought to the notice of the Central Government that DIAL are unable to raise Refundable Security Deposits to the extent anticipated and a substantial short fall is expected. It has also been stated that the lenders have not agreed to extend any further debt as the existing debt arrangement takes into account all possible revenue streams and have suggested that levy in the nature of capital receipts to leverage any additional debt. The shareholders have brought in shareholders’ advances to the extent of Rs. 1250 crores and are not in a position to take additional equity exposure beyond Rs. 1200 crores. Further, the present declining air traffic scenario has adversely impacted the revenue streams of DIAL and the Debt Service Coverage Ratio (DSCR). Accordingly, DIAL have proposed a levy of DF under Section 22A of the AAI Act, 1994 @ Rs. 350/- per departing domestic passenger and @ Rs. 1000 per departing international passenger for a period of 39 months.

The proposal of DIAL was examined by the Ministry of Civil Aviation in consultation with the Ministry of Law and Airports Authority of India. The Government also engaged M/s KPMG Advisory Services Pvt. Ltd. to undertake diligence and verification of the proposal submitted by DIAL. Government has been advised that DIAL can levy DF under Section 22A read with Section 12A of the AAI Act for the purposes mentioned in clause (a) of Section 22A. Further, the completion of project by March 2010, i.e., in time for Common Wealth Games 2010 was of utmost importance. Keeping in view the position that all other funding options appeared to have been exhausted, there was no option but to levy a pre-funding charge as contemplated under Section 22A so as to ensure timely completion of the project. Such pre-funding charges are accepted by ICAO subject to compliance with laid down guidelines/principles.

The Central Government have, accordingly, approved the levy of DF by DIAL @ Rs. 1300 per departing international passenger and @ Rs. 200 per departing domestic passenger w.e.f. 1.03.2009 for a period of 36 months, inclusive of all applicable taxes, purely on an ad-hoc basis, to fund an estimated short fall of Rs. 1827 crores. This approval is subject to review after 6 months when DIAL is expected to furnish the final project cost, which will be audited by an Independent Technical Auditor. DIAL have also been advised to review the bidding process of the Hospitality District to explore the possibility of raising further resources therefrom. A detailed accounting/monitoring mechanism is required to be put in place, inter-alia, including deposit of all DF receipts in a separate Escrow Account where AAI and the Central Government will have supervening powers; the account will be maintained as per accounting and audit procedures followed by AAI etc. AAI will play a critical role in the monitoring of levy and usage of DF and keep the Ministry apprised. The DF receipts shall be utilized only for construction of such “aeronautical assets” as are required to be “transferred” to AAI by DIAL upon expiry of the lease of IGI airport. The shareholders advances amounting to Rs. 1250 crores shall be retained in the project to fund expected increase in project costs.

Source : Press Information Bureau, Government of India

The US aviation regulator, Federal Aviation Administration (FAA), has delayed permission to a code-sharing agreement between Jet Airways (India) Ltd and United Air Lines Inc., as per the Mint.

The code share agreement would have given Jet Airways passengers access to United’s five hubs of Chicago, Denver, Los Angeles, San Francisco and Washington, and access to 20 other cities across the US, while United passengers would have been able to connect to 13 cities in India, including Bangalore, Kolkata, Mumbai and New Delhi.

India currently enjoys a category I status in the United States and the delay in permissions are very surprising. Jet Airways has has lodged a complaint against the delay at India’s civil aviation ministry, which will be taken up by India through diplomatic channels.

The FAA intends to do an IASA (international aviation safety assessment) review of infrastructure and safety procedures followed by India’s regulator, the Directorate General of Civil Aviation (DGCA) in the next three months, and India is facing the threat of downgrade to Category II status.

This will surely create relationship problems in the aviation sector, one of the key areas of trade and cooperation between the two countries. The upcoming 126 multi-role fighter aircraft deal, in which Lockheed Martin and Boeing are leading contenders, may also be threatened.

Read the full Mint article.

The Sunday Times of India has published an article detailing the slamming of the Ministry of Civil Aviation by the Standing Parliamentary Committee on Transport and Tourism.

Minister for Civil Aviation, Mr. Praful Patel, frequently flies in to Bangalore HAL airport, on board an aircraft owned by Delhi and Hyderabad airport promoters GMR.

HAL airport closure violated

In a damning rebuke to the central government, a parliamentary panel has stated that the closure of HAL airport was a clear violation of the due process. The department-related parliamentary standing committee on transport, tourism and culture headed by Sitaram Yechury said in its report, a copy of which is available with the STOI (Sunday Times of India), "The closure of HAL airport was not mentioned in the tender for Bengaluru Greenfield Airport. Naturally, all the parties who participated in the tender process would have made their offers on this basis only. Making an offer of closure of HAL Airport after the Notice Inviting Tender (NIT), appears to be a clear violation of the due process," the report that was presented to the Rajya Sabha and laid on the table of the Lok Sabha explains.

As regards the restriction on having another airport within 150 km of the existing airport, granting permission to start a new Greenfield Airport within that radius prima facie seems to be in violation of the government policy on airport infrastructure.

As per the policy, if another airport is allowed within an aerial distance of 150 km of an existing airport, a passenger-sharing formula has to be evolved. The government in the present case, not only allowed the new airport to share passengers but also closed down the existing profit-making airports. The closure of existing airports has been done in haste, the report objected.

"The Government of India appears to be unconcerned about the obligation of BIAL to construct and provide an airport as per the concession agreement. Even the area and capacity were not verified before permitting to open new and closing HAL airport. This appears to be an irregularity committed by GOI in this matter," the committee has also stated.

"Hundreds of crores of rupees were spent for developing infrastructure at the old airports both at Bengaluru and Hyderabad but it is lying unutilised due to the closure of old airports for commercial purposes. Another interesting fact is that the old airports at these two places are being used for operation of VIP flights, non-schedule flights, general aviation and helicopter taxis etc.

During the deliberations of committee, the AAI reported that there is absolutely no problem in operating of two airports simultaneously in a city. So, the committee recommends that the old airports may be used for short-haul flights, which are operating from the nearby airports, as it is more convenient. There is no reason or justification for keeping the hundreds of crores of worth infrastructure at the old airports idle just to be used for VIP and other flights.

The committee also notes that closure of HAL airport led to loss of jobs due to reduction in flights and due to closure of airline operators. Thousands of direct and indirect workers also lost their jobs including trolley retrievers, small time vendor, taxi drivers, auto drivers, loaders etc. Despite assurances by the respective managements they have not been accommodated in the new airports.

"Commercial Civil aviation activities are continuing in the Bangalore HAL with the consent of the management of BIAL and GOI, whereas the concessional Agreement and the notification issued by the GOI clearly prohibits any commercial aviation activity. This shows that if the government wants, they can operationalise the old airports not withstanding the agreement.

The paragraph of the article is in clear reference to the air taxi service operated by Air Deccan.

It appears the folks at Praja have obtained the minutes of the meetings of the Steering Committee for the new International Airport at Devanahalli (which has now become Bengaluru International Airport), under the Right To Information Act. I strongly suggest visiting the site and studying the document. It is an eye opener and provides a wealth of information on the thinking of the government.

In particular, I was rather shocked to read the minutes of the eighth meeting. It was interesting to see the unfair, but clever, tactics, the eventual winner, the Siemens consortium, used to eliminate the competition, rather than beat them.

PTI reports, Kingfisher Airlines, has said that it would effect fare cut across its network from January 1.

Without specifying the quantum of reduction in fares, in a statement today, Kingfisher Airlines Chairman, Dr. Vijay Mallya said

Kingfisher Airlines will begin the New Year on an aggressive note by slashing fares on its network,

The current low prices of Air Turbine Fuel (ATF) allows Kingfisher to pursue an opportunity to significantly increase market share by offering the fine five star flying experience at reduced fares.

Bangalore Aviation readers will recall, until now, Kingfisher, and its alliance partner Jet Airways, had been saying, fares would be cut only after the government classifies ATF in the Declared Goods category. The proposal of the Civil Aviation ministry is before the Parliament.

This long standing demand of airlines across the board, will ensure there will be a uniform four per cent sales tax on air fuel across the country, unlike the present, where sales taxes range from four per cent to 32 per cent, depending on the state, and accounts for over 35 per cent of airlines' operational costs.

However, several state governments oppose the uniform taxation as it would cause revenue loss to them.

Over the last four months, there has been a sharp decline in ATF prices. While some air carriers earlier this month reduced the fuel surcharge between Rs 200 and Rs 400, they did not touch the basic fare.

Mallya's decision could have its inspiration in the fact that Low Cost Carrier (LCC) IndiGo recently beat both Kingfisher Airlines and its LCC Kingfisher Red, to take third place in market share.

There is no doubt, the losses at the airline are significant. Just two weeks ago, there was news about four Kingfisher aircraft being de-registered. Doubts are rising on the impact of these losses on Dr. Mallya or his core alcoholic beverages business.

December 29, update.

The Times of India is reporting the fare reductions will be in the range of 10% and 15%. Jet Airways is expected to cut its fares by a similar amount, and Air India will follow suit. The LCCs IndiGo, SpiceJet, and Kingfisher Red are also working on the fares.

According to a PIB release, at a recent parliamentary session of the Rajya Sabha, Minister for Civil Aviation, Praful Patel informed that major work in modernisation of Air Traffic Control System (ATCs) has been undertaken at Delhi, Mumbai, Chennai, Kolkata, Hyderabad, Trivandrum, Mangalore, Bangalore, Nagpur, Ahmedabad, Varanasi and Guwahati.

The expenditure incurred by Airports Authority of India (AAI) on the modernisation of the Communication, Navigation and Surveillance and Air Traffic Management systems (CNS / ATM) during the last three years is as follows: (Rs. 5 Cr. = 1 Million)

• for the year 2005-06, Rs 118.20 crores;
• for the year 2006-07, Rs 66.15 crores;
• for the year 2007-08, Rs 200.71 crores.

After the installation of modern navigational/landing aids, increase in the handling capacity of airspace and airport, enhanced safety, reduction in delays in flight, saving of fuel and thus minimisation of adverse affect on environment, have been observed. Other benefits accrued include uninterrupted operation of flights through airports during the periods of poor visibility, monitoring of aircraft movements in avoiding over-flying over the restricted and prohibited areas and more effective and efficient monitoring of runways during periods of poor visibility.

Patel informed that Monopulse Secondary Surveillance Radars (MSSRs) have been installed at Delhi, Mumbai, Chennai, Kolkata, Trivandrum, Guwahati, Nagpur, Mangalore, Ahmedabad, Bangalore, Hyderabad, Behrampur and Varanasi, by the AAI, at a cost of Rs 229 crore.

MSSR provides position, distance, call sign and altitude of the aircraft and data link between controller and pilot. It also provides seamless surveillance over territorial airspace by filling the radar coverage gaps for smooth and efficient air-traffic flow.

New Delhi, and Mumbai will be installing a GBAS navigation system similar to the one proposed at Newark Liberty airport, by 2010.

Ministry of Civil Aviation (MoCA), in a meeting held recently in New Delhi, has asked domestic airlines to pass on the benefits of reduced jet fuel prices to passengers by reducing fares.

According to a report in Economic Times (ET) today, MoCA has also instructed the airlines to review their security systems and verify the background of their employees in the light of the recent terror attacks in Mumbai. The meeting was attended by CEOs of various airlines and officials of the Bureau of Civil Aviation Security (BCAS) and the Directorate General of Civil Aviation (DGCA). “We took stock of the entire aviation sector in the meeting on various issues right from Aviation Turbine Fuel (ATF) to security and airlines’ preparedness to land on airports during unusual fog conditions,” M Madhavan Nambiar, Secretary, Ministry of Civil Aviation (MoCA) told ET.

Nambiar further stated that the airlines cannot be forced to slash air fares as it’s a commercial decision of the air carriers. An official present in the meeting said that airlines had been categorically asked to reduce airfares to attract more passengers. “All of us should work together to increase passengers on the aircraft. Fares have to be competitive to fill up seats,” said the official.

According to estimates, there is still about 20 per cent excess capacity in the market that may put pressure on airline operators to slash fares. High airfares and slowdown in major economies has hit the domestic aviation sector. Domestic air traffic declined by 22 per cent to 3.04 million in November this year. Air traffic growth is expected to be negative for this year with the sector witnessing double-digit fall in passengers for the last several months.

BIA facilities under scanner
B S Arun, DH News Service, New Delhi:

A team of the civil aviation ministry will visit the Bengaluru International Airport (BIA) on August 19 for an inspection of the facilities there in the light adverse remarks made against the new aerodrome in its report by the Airports Authority of India (AAI).

The ministry officials will also hold a meeting with the State government and BIA officials regarding improvement of passenger amenities and other issues.

The AAI, in its report, concluded that the airport was facing severe capacity constraints putting passengers in great inconvenience.

Directed by the civil aviation ministry to conduct the study in the face of criticism of the facilities and capacity bottlenecks, the AAI also observed that as against the allotted 12 to 20 per cent of space for commercial utilisation, BIA has used up to 30 per cent of the space. This, the AAI said, has affected the passenger amenities. The problem faced by the passengers was acute in the security hold area (SHA), it noted and called for measures to set them right. Lack of adequate space for toilets in the SHA area has also been cited in the report.

The report, which has been submitted to the ministry, is understood to have suggested that plans for the second terminal should be taken up right away. It has said that the airport was already brimming to its capacity of 11 million passengers a year.

On the terminal capacity, the report, prepared by a team led by AAI member (planning) V P Agarwal, pointed out that the airport was built to handle a capacity of less than 10 million passengers, while the BIA was claiming that it was 11.4 million.

Hence, it said, reopening of the old HAL airport — closed after the May 23 opening of the new airport — might have to be looked into.

It, however, noted that the runway has not been saturated but a second runway would become necessary by 2011. The Tuesday meeting will also discuss the submissions to be made before the Karnataka High Court at the August 22 hearing of the petition relating to the reopening of the HAL airport. Recently, the Karnataka Assembly set up a House Committee to go into the various inadequacies of the airport including lack of adequate number of toilets, overcrowding at SHA, excessive utilisation of commercial space, no VIP lounge and narrow access to aerobridges among other things.

BIAL CEO BRUNNER TO DECCAN HERALD

• Passenger traffic growth far surpassed all projections
• Construction of a second terminal cannot be delayed
• A mini terminal at "low cost" to be built immediately
• Second runway in four years
• More space needed for passengers inside the terminal