The GVK-controlled Bangalore International Airport Ltd (BIAL) — is
currently expanding its terminal building to accommodate 17-20 million
passengers a year. It reached its original capacity of 11 million
passengers in its third year of operations in 2010. But it has not been a
good start for BIAL this fiscal. Hari Marar, president, airport
operations at BIAL, tells Ajay Sukumaran that the double whammy of
slowing business travel and reduction in capacity because of Kingfisher
Airlines' downsizing will keep growth relatively flat this year
How badly has Kingfisher affected BIAL?
At this point of time last year, it was our largest carrier. Today, it is operating about 6-7 departures a day from Bangalore. Last year this time, they were operating 47 departures a day. So, obviously that’s a huge impact on the Bangalore airport.
BIAL saw good growth and profitability in FY12. How do you hope to close this year?
I think this year we will close at more or less the same levels as last year. While we see a slight slowdown, it’s about 3% below last year at this stage, we hope to catch up in the next 8 months this year. We feel that from the winter schedule, things will start looking up again. That's traditionally the peak season, so, with that, things will sort of pick-up and we should at least be able to remain at last year's levels.
So growth will be flat?
But that's a perfect stage because by then we will have the terminal expansion ready and that gives us the right platform to grow from there. The first phase should be roughly in the first quarter of next year. We want to open up portions as and when they are ready.
If Kingfisher's downsizing has hit you so badly, how do you expect to keep the same volumes as last year?
If you look at Kingfisher’s operations, that's roughly 40 departures a day taken out of the system. Last year ,we were operating about 175 departures a day. We have come down to 135-140 departures a day. That’s about 20-25% reduction in Bangalore airport's traffic movements but in terms of passengers we are only about 3% below. So you can see it has got absorbed by other carriers. Plus airlines like Indigo, SpiceJet, Jet Airways, these are all expanding at this point of time, they will be inducting capacity.
We believe that they cannot afford a high potential market like Bangalore and they will put more planes here and that's what will ensure that we will remain at the same level as last year.
How badly has Kingfisher affected BIAL?
At this point of time last year, it was our largest carrier. Today, it is operating about 6-7 departures a day from Bangalore. Last year this time, they were operating 47 departures a day. So, obviously that’s a huge impact on the Bangalore airport.
BIAL saw good growth and profitability in FY12. How do you hope to close this year?
I think this year we will close at more or less the same levels as last year. While we see a slight slowdown, it’s about 3% below last year at this stage, we hope to catch up in the next 8 months this year. We feel that from the winter schedule, things will start looking up again. That's traditionally the peak season, so, with that, things will sort of pick-up and we should at least be able to remain at last year's levels.
So growth will be flat?
But that's a perfect stage because by then we will have the terminal expansion ready and that gives us the right platform to grow from there. The first phase should be roughly in the first quarter of next year. We want to open up portions as and when they are ready.
If Kingfisher's downsizing has hit you so badly, how do you expect to keep the same volumes as last year?
If you look at Kingfisher’s operations, that's roughly 40 departures a day taken out of the system. Last year ,we were operating about 175 departures a day. We have come down to 135-140 departures a day. That’s about 20-25% reduction in Bangalore airport's traffic movements but in terms of passengers we are only about 3% below. So you can see it has got absorbed by other carriers. Plus airlines like Indigo, SpiceJet, Jet Airways, these are all expanding at this point of time, they will be inducting capacity.
We believe that they cannot afford a high potential market like Bangalore and they will put more planes here and that's what will ensure that we will remain at the same level as last year.
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