1.

Project Overview:
1.1 Introduction:
New Bengaluru (Bangalore) International Airport (BIA) originally planned to complete
and start operations by 30th March 2008. Because of delays in air traffic control services, BIA
began operations from 23rd May 2008. BIA is constructed by Bangalore International Airport
Limited (BIAL) which comprises of five shareholders namely Larsen & Toubro, Siemens Project
Ventures and Unique Zurich airports (these three are private promoters), Government of
Karnataka and the Government of India (public promoters).
The new airport constructed by the mentioned shareholders is situated in Devanahalli,
about 40 kilometers north of the Bangalore city. 4000 acres of land is taken from Karnataka State
Industrial and Infrastructure Development Corporation (KSIIDC) on a long term lease for the
mentioned purpose. The airport began construction in July 2005. Redesign of airport project was
based on revision of traffic forecast done in June 2005. According to the study, the estimated
traffic flows for newly constructed airport on airport opening year (i.e. 2008) at 6.7 MN
Passengers.
1.2 Need for the Airport:
Bengaluru (Bangalore) known as the silicon valley of India despite the technological
prowess it was neglected for international travel connections. Despite cries from many business
commentators for the need of international airport facilities for continuing success in commercial
areas and tourist segment, it was never became focus till 2000s.
The new BIA planned to accommodate 3.5 MN passengers every year, but later it was redesigned
and augmented to handle 12 MN passengers. The augmentation is done by increase the size of
terminal, no of aircraft stands, new taxiways and their supporting infrastructure.
One of the obstacles for competition of the project was lack of FDI due to total control of all
airports by the AAI. This issue was resolved when Indian Parliament passed new legislation to
allow airports to stay in private ownership.
1.3 Benefits of the project:

Bangalore Airport will make a major contribution to local, state and national economies as a
critical transport infrastructure asset, an employment location and as a commercial activity
center.
1. Community Benefits: Airport delivers economic and social benefits to local communities
surrounding the airport. Through this airport the need for international transport facilities will
be fulfilled making a critical success for commercial entities.
2. Connecting communities: Airport will play a critical role in connecting people, markets and
communities.
3. Supporting jobs: Operations of airport involves a multitude of jobs. Airport creates diverse
employment opportunities related to aircraft operations and maintenance, passenger and
freight handling, air traffic control and safety, transport and logistics, airport management,
planning and construction, and various retail and commercial activities to service passengers,
airport visitors and workers.
4. Economic Benefits: The airport and associated businesses offer a diverse range of
employment in outer suburban areas. The airport is also an important facilitator of imports
and exports for local businesses. Passenger growth through the airport also stimulates
demand for other services in the local economy, including hospitality.
5. Regional & tourism development: Has the potential to increase tourism in the locality

2. Asset Characteristics
2.1 Design and facilities:
The passenger terminal is a single, four-level building capable of accommodating
international and domestic operations. The basement houses the retail storage, rest areas and
services. The arrival and departure areas are separated vertically with a modern, simple, straightahead flow system. The terminal is designed for ease of operation and minimum maintenance.
The total floor area is approximately 73,347m. The terminal building is designed to
accommodate 2,300 passengers at peak times. The design reflects the best industry practice and
caters for 24-hour operations, under all weather conditions. All these facilities were according to
IATA standards.

Common-use terminal equipment (CUTE) enabled 53 check-in counters and 18 self-check-in

counters. A new VIP lounge was inaugurated at level one of the terminal on 21 January 2011.
The airport has 40 gates and 8 air bridges, including one double arm and 9 remote bus bays.
There are a total of 42 aircraft stands, all of which have a fuelling pit. This is the first time that
the parking stands in Indian airports have had fuelling pits. A car park for 2,000 cars was built in
front of the terminal building at ground level.
The airport currently has one runway, which can accommodate all types of aircraft including
the Airbus A380. The runway, orientated 09/27, is 4,900m (16,076ft) by 45m (150ft) with light
paved shoulders making it 60m (200ft).
2.2 Equipment Suppliers:
Major suppliers for Bangalore International Airport Limited (BIAL) were Nuova Manaro,
ITW GSE AXA Power, UFL Group, Weigel Hochdrucktechnik and Amadeus IT Group SA.
Nuova Manaro supplied aircraft refueling equipment and is specialized in the design and
manufacturing hydrant dispenser, aircraft refueling vehicles and tanks for trucks. ITW GSE AXA
Power supplied pre-conditioned air units for aircraft and is the worlds leading supplier of solidstate ground power units (GPUs) and pre-conditioned air units (PCA) for airlines and airports.
Airport terminal furniture such as Seating, Counters and Public Guidance Systems were supplied
by UFL Group. UFL International is an industry leader in the manufacture and supply of airport
seating systems, counters, public guidance and complementary products for passenger terminals.
Weigel Hochdrucktechnik provided cleaning and runway maintenance equipment for BIAL. The
product line is centered around the TrackJet system, which is a standard innovation for of
removal of rubber and paint markings on runways, taxiways and aprons. Finally, the IT systems
were taken care by Amadeus IT Group, SA. Amadeus provides solutions to airport operators and
ground handlers and it is truly a global player in airline industry.
2.3 Partners for airport services:
As it operates under a truly open access model it allows all fuel suppliers to use the
facility and airlines to get the minimum prices on fuel. It selected the consortium of Indian Oil,
Indian Oil tanking and Sky tanking as its partner for aviation fuel facility which are all major

aviation fuel companies around the world. Each company contains 1/3 rd of equity in consortium.
Also BIAL selected LSG Sky Chefs and Taj SATS as its catering partners. These companies are
responsible for the design, construction, finance and operation of flight kitchen. The total
investment is over INR700m with 15 years contract.

2.4 Road and rail infrastructure:

To connect airport with the city, a new high-speed rail link project was proposed.
Bangalore Airport Rail Link Limited (BARL) building a special purpose vehicle to support this
and this is being funded by Government of India & Government of Karnataka.
Bangalore Metropolitan Transport Corporation (BMTC) runs eleven bus routes from city
to connect to new airport. BMTC operated 46 Volvo buses to the airport, and ensures availability
of bus every 30mins at each point in city. The buses are fully equipped to carry luggage and has a
capacity of 30passengers.
These are the official transportation contracted by BIAL to ensure the connectivity from
city to airport.
MeruCabs and Easycabs for taxi services & Hertz and Akbar Travels for luxury transport
services
BMTC Vayu Vajra A/C Volvo buses & BMTC Suvarna and Vahini non A/C buses
Despite the availability of transportation services, traffic build-up en route can increase
travel time from 1 hr. to 3 hrs. Bangalore City Traffic Police deployed interceptors, high
resolution video cameras to monitor violation and ensures safety.
2.5 Terminal Expansion
As per the plan of terminal expansion designed by HOK the space would become 150,556 sqm
with 90 check-in counters, 30 CUSS kiosks, 24 emigration and immigration counters, 48 security
pedestals, 15 baggage reclaim belts. The passenger capacity would be increased from 11.6
million to 17 million per year with 5,300 seating capacity. It was planned to open in phases from
2013.
2.6 Cargo Village

The airports cargo village which started in Jan09 strengthened the commerce and trade in
Bangalore by easing the clearances of import and export consignments. It was expanded to 11
acres with INR120m investment. It housed 120 freight forwarders and 80 custom house agents.
2.7 User Development Fee (UDF)
User development fee is generally charged to passengers to support aeronautical revenue for
maintenance, operation, development activities. The UDfs levied on domestic and international
passengers are used for providing passenger amenities and services. These fees are monitored
and determined by independent regulatory authorities. The Ministry of Civil Aviation has
approved a UDF of INR260 per each domestic outbound passenger at BIAL. International
passengers levied a UDF of INR1,070 till Jan09.
2.8 Surrounding area:
Bangalore International Airport (BIA) at Devanahalli announced to be surrounded by
eco-friendly settlements & no development to be done which can harm natural river valley in the
surrounding areas. BIAAPA proposed to mandate harvesting of rainwater to address water
shortfall in the area.

3. Various Structures
3.1 Ownership Structure
Contractors and Construction:
Karnataka state government holds 26% of the stake while private promoters contain
remaining 74%. Siemens, Zurich Airport and Larsen and Toubro were formed into a consortium
which undertook the project. These three companies all hold equity in the project. But, at the
moment, overall operations and financial control were monitored by Airports Authority of India
(AAI). In November 2009, Zurich Airport sold a 12% stake in the airport to GVK Power &
Infrastructure (GVKPIL) for $98.5m. GVKPIL acquired 17% interest from Larsen and Toubro
in December 2009 and another 14% from Siemens in October 2011.
Over 4,500 staff are employed to run the new Bangalore Airport and the shareholding of the
project was as follows:

AAI: 13%

Karnataka Government: 13%

Unique Zurich Airport: 5%

Siemens Project Ventures: 26%

GVK Power & Infrastructure: 43%

The airport was designed by Kaufmann and Van der Meer Planer of Switzerland. The

civil engineering and construction work began in earnest in July 2005. Larsen and Toubro of
India took care of this contract. Siemens Industrial Solutions and Services Group (I&S) and
Siemens India were responsible for the job of equipping the airport in Bangalore with technical
systems.
The $75m contract included the supply, engineering and installation of airfield lighting,
the IT and communication systems, the baggage handling system as well as the power supply
and the building services automation system. In September 2012, IBM was contracted to
supply Smart Airport Enabler - an airport operations management system.
3.2 Organizational Structure:
Leadership change:
Albert Brunner led BIAL through the years 2002-2009 and later took over by Marcel
Hungerbehler who took charge as the new CEO of BIAL.
3.3 Capital Structure
3.4 Board Structure