Protest Against Closure of HAL Airport

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Written By Devesh - 15 May, 2008

BIAL Bangalore BIAL HAL Airport Close Aviation

Dear Praja Friends

Below is a message from Lead India winner Rajendra Misra for your perusal. I hope you can make the time to come.

Regards

Devesh R. Agarwal

http://aviation.deveshagarwal.com

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Dear Friends,

 

Public Protest against closure of HAL airport - Saturday - 17th May @ 4PM at HAL Airport on Arrival GATE

 

You all must have seen and heard various debates and concerns in various media about the genuine need for Bangalore to have TWO airports.

The industry captains, opinion makers, political leaders and public at large has been working through various forums and platforms including Public Interest Litigation to reach an acceptable solution to this problem. High Court and Supreme Court took cognisance of this fact and ordered the government to negotiate with BIAL in good faith to keep HAL airport open to reduce the public inconvenience and future proof air-traffic growth of Bangalore.

However as you might have read (Times of India - May 15th - Page 6), this negotiation was a clever ploy by the central government to garner public sympathy and vote for governing party by announcing that up to 80-seater planes will be allowed to fly before the election date, but just the day after the elections were over, announcing that HAL will be closed, without giving any reason or explanation.

This shows that public interest is the last priority for the government.

We are planning a Press Conference tomorrow (Friday-16th May) which will be followed by a Public Protest on Saturday - 17th May @ 4PM at HAL Airport - Arrival Gate.

This will be attended by industry captains, community leaders, airport users and common public.

We request you to please participate in the protest to make sure that government takes note of our concerns and does the needful.

Please note that we are not against BIAL. We are really concerned about the following facts -

1. BIAL is under-capacity airport -

BIAL Capacity - 12 Million, Current Traffic at HAL 11.2 Million and growing at 30% per annum. BIAL will CHOKE in the very first year of its operations. Compare this with Hyderabad - Capacity 12 Million, Current Traffic - 6.5 Million

2. Access to BIAL is far from being satisfactory

All roads leading to BIAL airport are already choked. Imagine what happens when airport opens. TOI conducted actual trips from various parts of the city and it took 1.5 to 2.5 Hrs to reach BIAL in non-peak Hrs when airport is still not open.

Going by the past record of our government, we do not expect any major increase in capacity of our roads in near future.

3. BIAL is a private Monopoly and we are at the mercy of private operator
In absence of any alternate airport, BIAL has put steep UDF (user fee) of Rs. 650 and Rs. 1000 for domestic and international passengers. What is the rational for thsi fee. They have got 4000 acre land from government and all other possible tax concessions. Also note that Government has contributed Rs 434.9 crores vs private partners spend of only Rs. 326.7 (Times of India - 15th May, Page -1).

So here we are, private operators are using public money to make windfall profits and taking public for a ride.

We SPEAK-UP now or remain silent for ever!

Look forward to seeing you at HAL airport on Saturday - 4PM - Arrival Gate.

PS: Please see below an interesting note by Mr. Ravichandar (Feedack Consulting) an Infrastructure expert and coordinator of erstwhile BATF.

Regards,

RK Misra

Please visit www.changeindia.in for details.

For updates please sms START CHANGE to 575758

 

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ARTICLE FROM RAVICHANDAR - FEEDBACK Consulting

"I made some points at a recent BIC panel meet which I briefly reiterate:

First a confession – till Nov 2007 I was for honouring the sanctity of the contract and closing HAL. I have since revised my view and I shall present my case for being a 'turncoat' shortly.

A disclaimer – asking for HAL airport to remain open does not mean one is anti BIAL. BIAL is the future and is needed for the city. But HAL can co exist with BIAL being compensated.

The reasons why HAL should remain open (and none of them is about connectivity at all) :

· Future proofing is in the public interest. The capacity of BIAL is 12 mn passengers. We are currently at 10.5 mn passengers annually and we will reach current capacity by middle of 2009. With one runway the capacity can go to 14-15 mn passengers, a number that will be reached by mid 2010. The new runway (if it does come up) will not be before 2014 (admitted by BIAL and Govt). So expect shortage in capacity between 2011-14. I am not even referring to cargo which is reasonably messed up in the short term for the next year at BIAL

· One argument is that Hyd closed Begumpet so what is the big fuss? Hyd has a current demand of 6.5 mn passengers and an airport with a capacity of 12 mn passengers. Hyd and Blr situation not comparable.

· For a rapidly growing developing economy like India, conserving working infra assets makes sense (I do sound like Prakash Karat here). Closing down a working asset especially when it is known that we are going to run into a capacity constraint seems a silly thing to do. And spending Rs 4000 crores of public money on a high speed rail link from KSCA for a Rs. 2220 crores airport project is questionable when alternatives exist. And this spending for the fat cats is not going to go down well with aam aadmi.

· A private sector monopoly in the infra sector is not in the public interest particularly in the absence of a strong regulator. Someday we will chat about their revenue models. I think a duopoly will keep both parties honest in the interest of citizens.

· Closing HAL will be a self goal. Expect TN to announce a Hosur airport in due course post final closure. And expect that to join Hognekkal as an issue sometime down the line.

· 2 airports will strengthen State competitiveness, investments, job creation, et all.

The contract. It is not cast in stone. The Global tender did not have HAL closure as a promise. It was in 2004 just before the concession agreement was signed that BIAL insisted on it. And the Ministry of Civil Aviation agreed.

I realize a suggestion such as HAL to be open has consequences. Let me deal with them:

· It is not my case that HAL be kept open and BIAL can take a walk. BIAL is in the driver's seat with the contract. I am for users of HAL airport compensating BIAL on terms to be decided – the general public should not be made to pay for it. I think market can decide the demand and adjust supply accordingly – for instance the Mumbai-HAL fare can be 5500 and the Mumbai – BIAL fare can be 4200 and the difference is given to BIAL. This can be decided by auctioning slots too. BIAL could be made a shareholder in a HAL airport SPV.

· A point that is made is that PPP will suffer if we go back on the contract. I don't think so. Business will come where money is to be made and India is gold rush territory. It will suffer if there is arbitrariness in the decision to keep HAL open. If there is compensation to BIAL then rule of law applies. For eg. in a recent Peru airport, 70 odd conditions were renegotiated. The PPP models are imperfect and they are being honed with each experience.

· BIAL claims they will make huge losses and folks have bid at the airport expecting a monopoly. A public hearing on finances should help get a sense of the 'loss'. In their original projections they expected less than 7 mn passengers this year. If it is proven BIAL is financially devastated then HAL should not be open.

Finally, I repeat it is not about connectivity and travel time to BIAL which will be a hassle in the short term. It's about a few other issues I have tabled. You may or may not agree. I rest my case.

Cheers

Ravi"

 

COMMENTS


Runway Capacity?

narayan82 - 18 May, 2008 - 03:54

an Interesting thought - As I see it Heathrow has only 2 Active runways (the third is a short cross-wind runway) but still they cater to 68 million passengers.

Seeing both sides well

silkboard - 18 May, 2008 - 04:13

This comment has been moved here.

What a joke - if things don't go your way - scream foul. There is a contract - where the heck were you when the contract was written up - where were you when the damn politicians postponed the buiilding of the airport for 15 years. Where was all that energy when it was needed.

 Now you want to score some cheap publicity - now that an airport is finally ready to open - You are ready to go ahead and rip off contracts - So what is the big difference between you and that crummy politician who makes promises that are never fulfilled. Nothing...

It seems to have dawned quite early on Misra that public interest is the last priority of the government. 

where were these industry captains when the government sat on its backside and did nothing significant to improve connectivity from South Bangalore to Yelahanka?  Some of them did not even vote in the elections that just happened. 

The very same HAL airport which was described as a disgrace (have you seen the shock on first time passengers who arrive) is now being touted as a paragon of virtue. 

I landed in HAL Airport a week back from HIAL and there was a 50-person queue for the pre-paid taxi, no autos in the pre-paid auto stand.  I walked outside and took a bus.  .  When it rains there is no covered walkway to reach the pre-paid taxi (which usually waits on the road where MSIL is).  There are no buses from the airport to any part of the city.  This somehow is acceptable because the industry captains have cars waiting for them to whisk them away home or to their offices

Sorry - this does not cut much ice with me.

Srivathsa

 

 

Some more points (and Hosur?)

silkboard - 17 May, 2008 - 03:30

This comment has been moved here.

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