BANGALORE

Bangalore Airport serves one of India’s fastest growing cities, driven by the rapid growth of the IT sector. India’s 4th largest airport is also one its fastest growing, with total passenger numbers up almost 38% in the last financial year, and accelerating to 55% growth in the first half of 2006/07. A number of foreign carriers recently launched services to Bangalore including, British Airways, Air France and Emirates. Nok Air has identified the city as its first international route, with plans to commence service in 2007. This rapid growth is placing significant pressure on airport infrastructure designed to handle much lower traffic. The airport is currently unable to accommodate additional services during peak hours.

However, relief is around the corner as a greenfield airport with world class facilities is currently under construction at Devanahalli, and is scheduled to open in April 2008. In early 2006 the plans for the airport had to be extended to accommodate the much faster than forecast traffic growth since the time that construction commenced. The airport will have capacity for 11.5 million passengers when it opens.

The airport has been constructed by a private consortium, led by Siemens Projects (40%) and which also includes Unique Zurich Airport (17%) and Larsen & Toubro (17%). The public sector maintains a minority interest through the Airports Authority of India (13%) and the state government of Karnataka (13%).

The airport operator has recently awarded a number of concessions for the new facility, such as fuel (Skytanking/Indian Oil joint venture); catering (LSG Sky Chefs and Taj SATS); retail (Nuance/Shoppers Stop); food and beverage (HMSHost Corporation); hotel (Oberoi Group) and ground handling (GlobeGround India and Air India/SATS).

When the new Bangalore International Airport opens, commercial services will cease at the current facility which will remain as a test and research facility for Hindustan Aeronautics, India’s largest aerospace company.