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Protest Against Closure of HAL Airport
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
narayan82 - 18 May, 2008 - 03:54
Politician or you - What difference?
hari - 15 May, 2008 - 14:22
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...
Devesh - 20 May, 2008 - 16:06
Nag
HAL terminal is over capacity. The runway is not. With no RE taxiways, maximum movements recommended per day by IATA are 450. With 1 RE it is 500, with 2 RE it is 550. Only now has HAL airport reached its runway capacity.
BIA has 2 RE on Runway 27, and 1 RE on Runway 09. Incidentally, during winters, which are the peak traffic months, the winds dictate use of Runway 09.
Please read some of my articles which I think will be helpful for your understanding.
http://aviation.deveshagarwal.com/2008/04/case-for-keeping-hal-opening-in.html
http://aviation.deveshagarwal.com/2008/04/flying-at-time-of-bias-convenience-not.html
http://aviation.deveshagarwal.com/2008/03/real-capacity-of-bengaluru.html
http://aviation.deveshagarwal.com/2008/05/history-of-passenger-terminal-at-bial.html
I do not like to blow my trumpet, but, I have been monitoring Bangalore's aviation scenario since 1993. I am a member of the Bangalore Chamber of Industry and Commerce and head the Infrastructure Committee. In my life, I have flown over 4 million miles (6.5 million km), and visited over 50 airports. I am not in Aviation industry, but know the ins and outs of airport operations.
Trust me when I say, I know what I am talking about.
To those who say, we woke up at the last minute. It was my report that was presented to Mr. Praful Patel by a whole team of Presidents, past and present, of various chambers, along with Mr. PGR Scindhia, Hon'ble Minister for Industries, in Feb 2005, that resulted in the terminal expansion at HAL. It was my report in early 2006, that made MoCA put pressure on BIAL to expand their terminal from 3.8 million (yes they had downgraded the initial 4.5 million capacity) to 8 million, which some how later became 12 million.Incidentally, the additional 500+ Cr was not pumped in by the BIAL promoters, but taken as additional loans from INDIAN banks, and advance security deposit from all the concessionaires at the airport.
In that report, I projected demand of 8 million by 2008. I am happy that Bangaloreans propelled our economy to such heights that I was wrong in my projections. Air traffic has grown 250% in the 3 years BIAL took to build the airport. There is no infrastructure project in the world that can plan for this type of growth let alone provide for it. Air traffic grows at 2x to 2.5x rate of GDP growth. India is having a GDP growth next year of 8%. Having experienced this form of growth, why continue to put all our eggs in one basket, especially when that basket has proven, in the recent past, that it is not willing to invest more money. Why else is BIAL so gung-ho on UDF.
We have been pointing out the capacity constraints to government and to BIAL for close to a year now. As an industry chamber we try and work in cooperation with the government. Only when all efforts failed, did ALL industry chambers in Karnataka get together and via BCCF file a PIL. BCCF has BCIC, CII, FKCCI, NASSCOM, PIA, BIA, ElCIA and many more industry chambers in its membership. Members of the chambers are spread all over Bangalore, and Karnataka. Please give us some credit. When we speak, we do so after detailed study, In a country of low infrastructure, it is natural to want to retain all possible infrastructure.
The capacity of BIA as of today is 15 million, and that is the runway. BIA can expand the terminal in 1 year, but the runway takes 3 years, and BIAL has publically indicated only 2013~14. By 2010, even with the slowdown in growth, BIA will be a 15 million passengers. What do you propose to do for the next 3~4 years, you sure cannot have planes parking in the sky. Or does Bangalore get choked by the whims and fancies of a private monopoly ?
Airports today, are the ports and railway junctions of yesterday. Major drivers of economic growth. Today, over Rs 60,000 Cr. worth of goods are transported by air cargo. It is this economic engine called Bangalore that we are a part of. We give to it, and we benefit from it.
And just to re-iterate, I AM NOT AGAINST BIAL. I welcome BIA, just not exclusively.
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Regards
Devesh R. Agarwal
Visit my aviation blog at http://aviation.deveshagarwal.com
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