Eighteen months of handling the tech capital?s air traffic has been a mixed bag for the Bangalore International Airport Limited (BIAL), the nodal agency for Bangalore?s greenfield international airport. Controversies have chased the airport about its distance from the city and alleged non-compliance with international standards, since it began operations in May, 2008. The airport?s expansion plans are in place and traffic mounting as a sign of global economic recovery, according to BIAL CEO Marcel Hungerbuehler. Excerpts from an interview with FE?s Reema Jose.

How much have the low user development fee (UDF) rates hurt revenues? What losses has the airport incurred owing to UDF being less than Rs 675, as you had proposed?

In January, the Bengaluru International Airport was allowed to charge departing domestic passengers a UDF of Rs 260, considerably lower than the proposed fee based on the project cost. We were informed that this was an adhoc figure that would be revised. This difference in amount has led to a substantial gap between the expected and actual revenue. Also, collation of UDF for domestic passengers was allowed after the first eight months of airport operations. The recently formed Airport Economic Regulatory Authority is currently reviewing the UDF amount. We hope it to be raised.

How has the airport traffic grown since the launch?

The airport has handled over 142, 90,878 passengers since its launch in May, 2008. From its launch till October, the airport has witnessed a passenger traffic of 55, 72,117 of which domestic traffic comprised 80.32%. The figures indicate towards a market recovery from the affects of recession. The traffic has witnessed an upward trend from June onwards and coupled with two months of the festive season, the domestic traffic has been going up. Despite the pilot strikes in September, Bengaluru International Airport has witnessed increased passenger numbers. During this time, domestic carriers have also stabilised with higher traffic numbers. This growth is expected to continue hereafter and result in new markets being opened by airlines.

Recently, a government committee is said to have reported that BIA did not conform to international standards. Please comment.

Kindly note that the draft report is currently under preparation and is not known to us hence it is not appropriate for us to comment on the individual remarks referred. In the last quarter Airport Service Quality (ASQ) which is a world graph of airport performance standards, the Bengaluru International Airport was rated as high as 4.7 comparing it to the best airports in the world. More importantly, the online as well as physical feedbacks received from passengers have been positive as well as encouraging.

What is the status of the new terminal and runway? What investments would this call for and what deadlines have you set for these?

The next immediate expansion of the Bengaluru International Airport would include extending the apron from the current 42 aircraft parking stands to 62. Details of the second terminal are in an advanced planning stage and progressing fast. The second runway needs to be operational by around 2016, yet we have already started the planning process.

Are you satisfied with the current road connectivity to the airport, given that there was a debate over high-speed rail versus metro rail link to reach the airport? What according to you is the best way to access the airport once traffic picks up?

We are happy that a high-speed direct metro connection between the city and the airport has been put on the fast track. BIAL has always maintained that this step is imperative not only as an access to the airport but also for the city?s infrastructure. Furthermore, development in terms of road widening and additional roads to reach the airport is encouraging. A peripheral ring road and an express highway are also on the cards.

What challenges did you face in making it the gateway to South India, as you had envisioned it?

BIAL aims to develop Bengaluru International Airport as a gateway to the South of India. The region needs a strong aviation platform for both domestic and international traffic, to allow seamless transfer between domestic and international flights for passengers as well as cargo. All successful aviation hubs in Asia have been developed out of such a single platform.