The Bengaluru International Airport Limited has asked the Airport Economic Regulatory Authority to maintain its existing tariff for the next 2.5 years as part of efforts to implement the expansion plan of the city airport.
The Bengaluru International Airport Limited has asked the Airport Economic Regulatory Authority to maintain its existing tariff for the next 2.5 years as part of efforts to implement the expansion plan of
the city airport.
Managing director and chief executive officer of the airport Hari Marar told reporters here that the proposal has been made to also prevent the customers from the ‘tariff shock’.
“We are in the midst of a Rs 12,000-crore expansion plan along with which is our determination of tariff,” he said, adding that this was a crucial phase of the expansion plan since the opening of the international airport.
The airport managers have debt and equity as two options to generate funds for expansion which wouldrequire at least Rs 3,000 crore to show its share ofinvestment to the bankers to get a maximum of 75 per cent of loan.
Fairfax, Siemens, government of India and government of Karnataka were the stakeholders who have invested funds, but the government entities have not demand their share of profit because they want the profit to be infused into the expansion, he said.
Highlighting the need for eastern connectivitywithin the city via road as the lone route via Hebbal was crowded, which could hamper the growth of the airport, Marar said citing the dearth of investors in the proposed business park.
He further said, “We’d proposed the suburban railway project the roadmap for which was prepared and the State government of has decided to invest.”
“Once the project is through, we will transport customers free of cost to our terminals,” he said, while also supporting the idea of a Metro rail for easy access to the airport.
He said the number of people using the airport was set to increase from 27 million this year to 80 million in 2028.
Executive vice-president (finance) of the airport Pramod Kumar Bhambani said 70 per cent of the revenue comesfrom aero service and 30 per cent from non-aero service.
The revenue from the aero service has exceeded the projection of estimated number of passengers using it, he said.