I have been a dog-lover since childhood. I grew up with Silky, a Lhasa Apso, Snooty and Growler, two Spitzes. In the US, Keesha, a Keeshound kept me company. Today our family includes two Champions, Brandy, an Irish Setter, and Isis, the only female Giant Schnauzer in India.

I flew with Isis from the USA to Bangalore HAL airport, without any problems, and read the below story in the Bangalore Mirror with considerable sadness.

Even today, I will unconditionally recommend Lufthansa for anyone carrying pets internationally. Lufthansa has a fully functional and caring pet transit centre at Frankfurt airport. Vets to check your pet, and caring staff feed your pets, walk them, and let them relieve themselves.

The lack of a quarantine station is not just impacting pet lovers, but also the food, restaurant, and tourism industry in Bangalore, since food cannot be imported to Bangalore. Similarly, the lack of an office of the drug controller, forces the entire bio-tech industry in Karnataka, to use Chennai.

This is despite the cargo operators at BIAL, Menzies Bobba, and Air India - Singapore Airport Terminal Services (AI-SATS), having some of the best cold room and freezer facilities in the nation.

One of the reasons given for a lack of the quarantine station, is a measly 10 acres not being allotted by BIAL. I find it hard to believe that BIAL management cannot find 10 acres out of the 4,000 allotted to them.

The quarantine station is run by the Department of Animal Husbandry under the Ministry of Agriculture, and the Drug Controller comes under the Ministry of Health. Both ministries are run by parochial ministers, Sharad Pawar and Ramadoss, who will do anything to favour their own state. I am sure you have figured out by now why Bangalore is being denied.

I invite your action. Post your comments on this article, write to the respective Ministers and insist Bangalore be given its due.

- Devesh Agarwal
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A recent customs circular, banning the transit of animals through Bengaluru International Airport, has got pet owners and importers in a flap. The only option now is to bring their pets to or from Chennai airport, which has a quarantine facility

By Aditi Soni & Praveen Kumar

Have a pet and want to take it along when you fly to or from Bangalore via the new Devanahalli airport? Briefly put, you can’t.

Reason: The customs department has issued a diktat to all airlines operating from BIA not to allow the transportation of pets; else, they could face legal action.

Customs officials have told airlines not to book pets aboard inward or outward flights till the Devanahalli airport gets a quarantine facility. According to the department, such a facility requires a minimum of 10 acres of land.

It should be run under the supervision of the animal husbandry department, and vets and other staff should be posted there.

Once an animal is booked to fly, it should be quarantined till departure. A pet entering the city should be quarantined till its owner comes to claim it.

“BIAL is finding it difficult to allocate 10 acres of land for a quarantine facility. They say there is a shortage of land to set up a second runway and other airport-related infrastructure,” said a senior customs official. Interestingly, the Devanahalli airport is spread across a humongous 4,000 acres!

But pet owners are not convinced with this explanation. “Customs officials allowed transportation of pets through the HAL airport, which did not have a quarantine facility. After the opening of BIA, they have come out with this rule. It is a partisan attitude,” said one pet owner. “Earlier, at the HAL airport, we got a cage of our pet’s size made and booked it through an airline by paying the required charges. Why can’t they do the same at BIA?” he queried.

In the circumstances, those wanting to fly with their pets have to resort to the costly and time-consuming alternative of taking the animal by road to the Chennai international airport, which has a quarantine facility. There, airline companies accept the booking and fly the pet to the destination of the owner’s choice. Similarly, owners bringing their pets to Bangalore have to get them quarantined at the Chennai airport first and then take the road route to Bangalore.

The customs’ no-no to pets at BIA has not only added to the hassles of individual pet owners, it has also imposed a huge burden on those in the business of importing animals. Faced with the prospect of taking the road route to or from cities like Chennai, Mumbai and Delhi which have airport quarantine facilities, some have decided to give up the business altogether.

“I seriously wonder why BIA, despite being an international airport, is deficient in this regard,” said one dog importer who has been in the business for 50 years. Recalling how easy it was to import dogs earlier, he said, “First of all, air travel was not at all expensive. One could easily travel to Bangkok for just Rs 12,000, and doing your shopping and bringing a pet along were the added incentives.” Particularly galling to him was the extra taxi expense he has to incur from Chennai to Bangalore.

Another importer said, “We were adhering to all the rules. We used to take a licence from the customs as well. But still the transit of animals has been banned in Bangalore, which is nothing but stupidity on their part. If the Chennai, Mumbai and Delhi airports can allow pets to travel, there is no good reason for Bangalore not to do so too.”

Even as some pet shop owners have given up on selling imported breeds because of the trouble involved, others remain unaware of the customs’ ban on animal transit through BIA.”I know birds are not allowed to be exported or imported. But it comes as a surprise to me that pet dogs too are not allowed in,” said Shariff from Pet Planet.

However, there will always be those who will brave all obstacles to acquire the pets of their choice. Noting the current craze for small dog breeds, one importer said, “Terriers of different kinds are what everyone wants to have. You can’t even think of getting them in India. That’s why even if I have to come via Chennai, I do it for the sake of my business.”

And what does the BIAL management have to say about the ruckus caused by the customs’ circular? “It’s not the airport but the airlines who have to take a decision. Most of the time, it’s the airlines who don’t agree to carry pets,” was a BIAL official’s bland response.

The battered India airline companies received a lifeline from the government on October 31.

The 5% Customs duty on Aviation Turbine Fuel (ATF) has removed. In addition the government controlled oil marketing companies have announced a price reduction of Rs. 6,000 per kilolitre on ATF.

These two steps, will result in an about 17% reduction in prices, but predictably, airlines have chosen to hoard the price reductions to buttress their shattered financials, and say it is too early to say whether the drop can be passed on to customers in the form of lower air fares.

Adding insult to injury, airlines will force, their customers to start paying the "transaction fee"on air tickets from November 1, 2008. The fee will hike domestic fares by up to Rs. 500 and international travel by up to Rs. 10,000 a ticket. This fee will be payable even on refund tickets.

Please see the tags "Transaction Fee" for articles on this subject.

Back in June, I led a high level delegation of industries on a visit of the air cargo facilities run by Menzies Aviation Bobba Group, and Air India Singapore Airport Terminal Services at Bengaluru International Airport. (Read that article).

We observed that the Indian Customs Authority did not have a full presence at BIAL airport, despite earlier assurances to Industry in March 2008. To correct the situation, the Bangalore Chamber of Industry and Commerce (BCIC), made a representation to the local Customs office as well as to the Chairman of the Central Board of Excise and Customs to correct the lacuna.

The Chamber received the following letter from Customs recently, and it is self explanatory. Thanks to the Customs as well as many members of the Chamber who put in efforts.

OFFICE OF THE COMMISSIONER OF CUSTOMS,
CENTRAL REVENUES BUILDING, QUEEN’S ROAD, BANGALORE – 560001.

TRADE FACILITY No. 47/2008
Dated: 11/09/2008

Sub: Shifting of the Operations to the Air Cargo Complex at Devenahalli. Reg

Kind attention of the Importers, Exporters, Custom House Agents and all the concerned with the trade is hereby invited to the necessity of shifting the operations (Assessment, Bonds, Audit, Service Centre, Bank, etc.) to the Air Cargo Complex at Devenahalli, which are at present carried out from the old Air Cargo Complex premises near HAL Airport.

In this Connection, the trade is hereby informed that all such operations will be transferred to the new premises in a phased manner by middle of next month. To begin with, the Service Centre operations will be gradually shifted. All the major operations from the Service Centre will be available only from the new premises from 18th of September, 2008. Only two terminals will be made available at the old premises for facilitating Query reply and amendments. Hence, all the concerned are hereby advised to gradually shift their operations including payment of duty to the new Air Cargo Complex at Devanahalli accordingly.

Assessment and all other official functions currently operated from the old premises near HAL Airport are likely to be shifted to the new Air Cargo Complex at Devanahalli by the middle of next month.

A.K. KAUSHAL
COMMISSIONER OF CUSTOMS

On Friday, 13 June 2008, I had the privilege of leading a delegation of senior supply chain managers from member companies of the Bangalore Chamber of Industry and Commerce (BCIC) on a visit of the two cargo terminals operated by Menzies Aviation Bobba (Bangalore) and Air India Singapore Airport Terminal Services (AI-SATS) at BIAL airport.

The team comprised of senior officers of a veritable "Who is who" of Bangalore industry, and was 360 degrees in sector verticals (Automotive, Biotech, Earth Moving, Electronics, Floriculture, Garments, High Tech, Logistics providers, PCB), as well as geographic locations all around Bangalore.

Hosting us were Mr. Andrew Brant, CEO, and Mr. Kamesh Peri, Director, of Menzies, Mr. Ranjiv Ramanathan of AI-SATS, and Mr. Marcel Hungelbeuhler, COO of BIAL, along with their respective operations teams. They are all competent and committed people.

Compared to my visit of 28-Apr-2008 (read article), the progress made in the last 15 days has been astounding, reflecting the hard efforts of everyone at Menzies, AI-SATS, and BIAL.

Menzies, services the European carriers, Lufthansa, British Airways, Air France, Thai, and Kingfisher, while AI-SATS services Air India, Indian Airlines, Jet, Singapore, Malaysian, Emirates, Etihad amongst others.

While the Menzies terminal is definitely way ahead in terms of preparedness, AI-SATS is making rapid strides in catching up.

After a tour of the two warehouses, the team's assessment was, that AI-SATS, which was forced to commence operations in an unprepared state, should be fully functional in about 6 - 8 weeks, while Menzies-Bobba is almost fully operational.

Compared to the poor conditions at MSIL and JWG terminals at HAL airport, the new cargo terminals are definitely superior, (read article), but they need to improve to global standards.

While new concepts in cargo handling have been brought in, the team, all expert supply chain managers, some handling over 100,00 item inventories, was disappointed by the lack of quality systems and metrics with regards to traceability and handling.

The offered many expert suggestions and critical assessment to Menzies, AI-SATS, and BIAL. The reception of suggestions was encouraging, and we look forward to constantly improving services, in-line with the global reputations of both operators, and BIAL.

BIAL indicated, that they have made facilities for low cost meals that will be helpful for the numerous employees of Customs Agents, Cargo Agents, and transporters. Traffic flow issues were being addressed.

Despite the best efforts of both the cargo terminal operators, it is still taking a minimum of 2 days to clear the cargo. The two big impediments appear to be, operations of Indian Customs authorities and some airlines.

Despite, the commitment of both the Chief Commissioner and Commissioner of Customs, to industry at a meeting in early March, there is still no assessment at BIAL, only at HAL airport. Despite the Electronic Data Interchange (EDI) system, Customs demands physical papers, which need to be collected the day following cargo landing, and physically carried across to HAL, assessment carried out, duty paid, and then the papers again carried back to BIAL for customs inspection and release. It is painful, time consuming, and only hurts Bangalore's industry by increased time and costs. The team demanded that Customs live up to their commitments and commence assessment at BIAL immediately.

Certain airlines are not further aggravating the situation by not filing their paperwork electronically. The team requested BIAL to ban these airlines from carrying cargo.

One of the cargo operators was very insistent, on not being clubbed along with the other, in assessments. Unfortunately, the one point the cargo terminal operator missed, was the fact, that the team was the customer of their customers, the airlines. The airlines decide on which terminal operator handles their cargo, not industry. Therefore, the two operators are measured in entirety.

As Theodore Levitt said, “The true business of every company is to make customers, keep customers, and maximize customer profitability”.

The team offered a constant engagement to help Menzies, AI-SATS and BIAL, reach their potential of global standards in service, and ensure industry's profitability and by extension Bangalore's growth. The encouraging response is promising.

A picture is worth a thousand words. So I will let the images do the talking of my visit to BIAL on May 28, 2008.

While much is said about the passenger terminal building and the passenger experience, the support facilities are in a sorry shape, and partly explain the problems, plaguing the passenger terminal.

The cargo terminal building of Air India - Singapore Airport Terminal Services (AI-SATS) is an unmitigated disaster. How Customs authorities permitted a warehouse, that is at least 2 months away from even basic inhabitation, to function as a high security bonded warehouse, is a mystery.

What is even more sad, is that fact that SATS is renowned for it good service, and is a subsidiary of the world famous Singapore Airlines, of whom, I am still a very loyal customer. It appears they were pressed in to commencing operations before they were ready. This is an answer the BIAL management, and the Indian Customs Authorities in Bangalore should answer.

AI-SATS Cargo terminal serves the following airlines :

• Air India
• Indian Airlines
• Singapore Airlines
• Jet Airways
• Malaysian Airlines
• Emirates
• Etihad
• Dragon Air (subsidiary of Cathay Pacific)

The incomplete cargo village meant to house cargo and customs agents. Right now they are working by the roadside.

The building meant to house the airlines' staff. Right now they are having to "make do" in the BIAL administrative building (in white to the left).

Traffic congestion just to enter the passenger terminal building. Given the lack of self control of Bangalore driver, note the lack of any police or security guards to control the traffic, and signs to guide visitors to the correct lane. (The left lanes are meant for the 10 minute pick-up /drop-off).

Police, Army, and other government vehicles "hogging" the parking space in the pick-up / drop-off lanes, adding to the congestion. Of course, the 10 minute rule does not apply to them, only us poor souls who actually pay for using the airport.

A temporary shed, serving as the airport staff canteen, opposite the BIAL office, about 500 meters west of the Passenger Terminal Building. I have said before, if we do not ensure the comfort, of those who ensure our comfort and safety, we are heading for a systemic failure.

The narrow service road leading from the passenger terminal building to all the service and auxiliary buildings (BIAL administrative offices, airline offices, flight kitchens, cargo terminal buildings (CTBs), fuel farm). It was completely choked. It took me 30 minutes to travel the 2 km.

In the absence of any public toilet facilities in the auxiliary buildings, employees and workers at the airport, have to "make do", with an Indian touch to the International airport.

The narrow service road is completely jammed. It took me about 30 minutes to travel 2 km from the PTB to the CTB. There is no alternate road. I saw works of ground handling agents AI-SATS, getting off their shuttle bus, and running the 1 km to the terminal, in order to report to work on time. This narrow service road cannot handle the all vehicles. It is having unintended consequences on passenger operations since the flight kitchens, airport and airline offices are all on this service road.

Due to overloading of the cargo warehouse parking, and the lack of any policing or security control, vehicles are parked haphazardly, encroaching upon the already narrow service road.

Absolutely mayhem on the road with no policing or security to control the chaos.

Export cargo dumped outside the AI-SATS Cargo Terminal Building (CTB) in the rain.

More cargo just lying already soaked in the rain. Notice all the civil construction in progress, and the cargo and customs agents having to use boxes and cartons as tables for work.

Zinc sheets and flapping plastic making up a temporary wall, of what is supposed to be the AI-SATS Customs bonded "high security" warehouse. Customs is required to grant permission, only after a thorough inspection.

Workers on the roof of the AI-SATS warehouse. Welding was being done directly overhead the cargo. The roof is incomplete and this is the rainy season.

A temporary and naked heavy electrical outlet, with valuable cargo just dumped all around it. A major fire and safety risk.

Valuable export cargo, damaged by poor handling and storage before it is has even left our city.

Over 70% of the floor space of the AI-SATS warehouse is being used to store building construction materials. Welding is being done, right next to cargo. Due to sheer un-preparedness, over 100 tons of cargo is lying outside the warehouse on the tarmac waiting to be brought in. What cargo was brought in, is just haphazardly dumped all around, and is not traceable. Both the Menzies and AI-SATS warehouses are badly understaffed. Cargo agents, and even airlines' managers were seen trying to help AI-SATS locate cargo to pacify irate importers and agents.

An high view of the choked service road. BIAL has blocked the entrance to the service road on the fuel farm side, without notice or explanation to any of the operators, adding to everyone's misery. Over 50 tons of export cargo in still on trucks, LCVs and lorries, waiting for the last 24 hours to enter the warehouse to unload cargo.

Another view of the choked service road. Observe the incomplete civil construction of the AI-SATS terminal.

Airports in the 21st century, are like the ports and railway junctions of the 19th and 20th century -- critical drivers of economic growth. As individuals, we look to the glamour and prestige associated with passenger air travel, while tending to overlook the air cargo requirements of commerce and industry which is drives the economic engine of Bangalore.

Thanks to years of power deficiency, Bangalore's economy is technology oriented. The IT industry is an addition to the long list of "high tech" industries calling Bangalore home. Telephony, electronics, machine tools, aeronautics, precision engineering, auto parts, garments, and floriculture industries, all of which produce goods, high in value, low in weight, and in many cases, perishable. All goods which are ideally suited to transport by air.

Globally, over 40% of goods by value are sent by air instead of surface transport. At Bangalore, which lacks a sea-port, it is more than 50%. Everyday, about Rs. 150 Crore (US$ 37 million) worth of goods transit Bangalore's airport, and this is set to double as soon as additional capacity is made available.

We are entering the final countdown to the operational commencement of the much vaunted "dream airport", Bengaluru International Airport (BIA), being promoted by BIAL consortium.

However, the dream is turning sour for much of Bangalore's industry.

BIAL has appointed two companies to provide Air Cargo terminals at the new airport. One in Menzies-Bobba and the other is Air-India - Singapore Air Terminal Services (AI-SATS).

More than a month ago, representatives of BIAL, Menzies-Bobba, and AI-SATS, assured industry that air cargo operations were ready to go, and painted a rosy picture of comfort and state of the art handling.

These are pictures taken at the AI-SATS warehouse on the evening of May 22, 2008, just 2 days before the launch of the new airport. Clearly, there is a huge gap between claims and reality.

Gaps between the roof and the walls

Unfinished construction with no security visible

Inadequate infrastructure. Generator in shambles.

What is absolutely mind boggling, is that the Customs Authorities have given the "all clear" to this warehouse, and have issued the necessary permits and bonding permissions to commence operations!!!!!!

The warehouse is clearly not ready for operations, and you will observe, the complete lack of basic facilities, even safety and security, an absolute must for any bonded facility.

By all appearances, this warehouse will require about 1 month to complete. In that month, this warehouse has the potential to handle cargo of value greater than the total investment in the airport.

Losses or damages to precious cargo will result in magnified damages of over Rs. 5,000 Crore to Bangalore's industry, and by extension it is Bangalore's economy and residents who will suffer the losses, due the un-preparedness on the part of BIAL and its concessionaire(s), and the hasty, ill-advised, and wrongly motivated actions by the Customs Authorities.

Taking a cue from other statutory bodies like the Airports Authority of India (AAI), and Central Industrial Security Force (CISF), the Indian Customs authorities have demanded payment for their services rendered at the private operated airports like Bengaluru International Airport (BIA) and Rajiv Gandhi International Airport (RGIA).

Up till now, while AAI and CISF used to be paid for services like air traffic control and security services, even at AAI operated airports, Customs and Immigration were seen as a sovereign function, and no airport operator had to pay for it. But then, all airports in the country had been developed and/or operated by the state-owned AAI.

As per a news story by DNA of Sify, "The Central Board of Excise and Customs (CBEC) is seeking payment of salaries for its staff to be deployed at the new airport as well as expenses on fittings and fixtures, housing and transport for these people. As per existing policy, no airport operator is permitted to conduct certain operations (including security of the airport, customs and immigration) on its own so it has no choice but to approach the designated central agency for the purpose."

This demand poses an additional cost for both GMR and BIAL, the promoters of RGIA and BIA respective, and puts the Ministry of Civil Aviation in an embarrassing position. While the ministry has lodged a strong protest with the Finance Ministry, the operators at RGIA, are paying the demand "under protest". When BIA opens up, BIAL will also have no choice but to accept and pay.

I am in favour of this approach. For too long, we in India, have been used to getting services from the Government "gratis". We need to move to a lower tax regime, with a "payment for services", even for Governmental services. Customs have the right to demand their costs be re-imbursed, however, then, the airport operator should also be given the ability, to demand responsibility on the Customs authorities to follow rules of commerce and deliver the required services for payment received.

The rupee should cut both ways.

Part of this story was sourced from Sify.com and DNA Money