AAI makes progress on PPP for six airports

by BA Staff

Yesterday, the Airports Authority of India (AAI) announced that it has invited the Request For Qualification (RFQ) for selection of the prospective bidders for Chennai and Lucknow Airports for conversion of these airports to a Public Private Partnership (PPP). The RFQs will remain open till mid-October, and applications are allowed from a single entity or a consortium.

As per a report from the Press Information Bureau,

The SPV shall be formed for this purpose. In order to secure representation of the Airports Authority of India on the Board of the SPV, the Concession Agreement will include a provision for issue of a golden share in accordance with a Shareholders’ Agreement that would form part of the Concession Agreement. 

The concessionaire can levy tariffs for aeronautical services including the User Development Fee (UDF) as may be determined by AERA to start with. Such charges would be revised normally once every five years by the Airports Economic Regulatory Authority (AERA) in accordance with the AREA Act. The RFP would indicate the parameters for determining charges for aeronautical services as well as the UDF 

It is expected that similar RFQs will be opened at the remaining four airports earmarked for transition to PPP (Kolkata, Jaipur, Guwhati, and Ahmedabad) soon. No applicant will be allowed to participate in the PPP at more than two of the six airports involved. 

The new PPPs will help bolster AAI's finances at a time when the authority is struggling under the weight of nearly Rs. 1,900 Crore worth of unpaid dues from several airlines. 

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Mangalore, Lucknow, Varanasi, Trichy, Mangalore and Coimbatore declared International airports

Photo copyright Samrat Mondal. Used under CC licence.

The Union Cabinet today approved the declaration of Chaudhary Charan Singh Airport, Lucknow, Lal Bahadur Shastri Airport, Varanasi and airports at Tiruchirapalli, Mangalore and Coimbatore as international airports.

The Indian ministry of civil aviation says, all these airports are capable of handling medium capacity long range type of aircrafts and are also equipped with facilities for night operations. These airports have been recently upgraded to international standards.

The release goes on to provide details of the airports, and while are happy for the information, and congratulate these airports and the ministry, we cannot but help notice the glaring contradictions.

Chaudhary Charan Singh Airport, Lucknow: The airport runway is suitable for operation of AB-300 type of aircraft in all weather conditions. The existing apron is suitable for parking 14 aircraft (2 B747, 1 B-767-400, 11 AB-321 type of aircraft), in Power in/Push back configuration. Presently, Indian Airlines, Jetlite, GoAir, IndiGo and SpiceJet airlines are operating domestic flights. [If the runway can only handle an Airbus A300, the smallest of Code D aircraft, why have stands for larger aircraft like a 747? Also, Indian Airlines was merged in to Air India. Is the ministry trying to send a signal to the world at large?]

Lal Bahadur Shastri Airport, Varanasi: The airport has a runway suitable for operation of AB-320 type of aircraft in all weather conditions. The existing apron is suitable for parking 5 B767 and 4 AB-321 type of aircrafts. Presently, Air India, Jet Airways, Jetlite, SpiceJet and Kingfisher airlines are operating domestic services through this airport. Air India, Thai Airways and Cosmic Air are operating International flights through this airport.
[Again, if the runway can only handle Code C aircraft (Airbus A320/Boeing 737 size), why have parking for a Code D aircraft like the Boeing 767?]

Tiruchirapalli: The airport is suitable for operation of AB-320 / B-737-800 type of aircraft in all weather conditions. Night operations are permitted. Domestic and international flights are operating and the destinations covered are: Abu Dhabi, Chennai, Colombo, Dubai, Kuala Lampur, Mumbai and Singapore. Airlines operators - Air India Express, Air Asia, Kingfisher, Mihin Lanka, Sri Lankan and Tiger Airways. The airport is equipped with navigational aids and visual aids.

Mangalore Bajpe Airport: It is suitable for AB-310 and B737-400 type of aircraft operations in all weather conditions. Night operations are permitted and domestic and international flights are operating and the destinations covered are: Dubai, Doha, Muscat, Kuwait, Calicut, Bangalore, Hyderabad, Chennai and Mumbai. Airlines operating are :- Air India, Kingfisher, SpiceJet, Jet Airways and Air India Express. The runway is provided with instrument landing system (ILS).
[Air India Express has only Boeing 737-800 aircraft in its fleet. Why specify an older generation Boeing 737?]

Coimbatore: Coimbatore is presently handling limited international operations. The Airport is suitable for all weather operation of B-767-400 type of aircraft. Night landing operations are permitted at the airport. Destinations covered are: Bangalore, Chennai, Calicut, Delhi, Hyderabad, Mumbai, Sharjah and Singapore. Airline operators are : Air India, Air Arabia, IndiGo, Jet Airways, Jetlite, Kingfisher, Silk Air and Spice Jet. The airport is equipped with navigational and visual aids including CAT-l Instrument Landing System (ILS).

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New terminal at Lucknow airport found defective

A note from the Press Information Bureau of India about Lucknow airport, which is incidentally named after the father of present civil aviation minister Ajit Singh. The airport is owned and operated by the Airports Authority of India.

Taking a serious note of the complaints of irregularities in the construction of the New Terminal Building of the Chaudhary Charan Singh Airport, Lucknow, Union Minister of Civil Aviation, Shri Ajit Singh has decided to refer the matter to the Chief Technical Examiner’s Wing of the Central Vigilance Commission (CVC) for conducting a detailed enquiry into construction of the building. The decision of Shri Ajit Singh is based on a preliminary enquiry report submitted by a committee which was headed by Shri Samir Sahai, Chief Vigilance Officer, Pawan Hans Helicopters Limited. This committee was constituted by the Minister himself following various complaints received from Members of Parliament and news items published in this regard in newspapers. The report submitted by the enquiry officer has prima facie substantiated various defects in the construction quality, design and maintenance of Lucknow Airport Terminal.

The committee members visited the Airport in Lucknow and found the quality of work of the New Terminal Building below standard. The major defects included leakages from the roof above the check-in counter, in the ceilings near the departure lounge corridor and from some of the thermal expansion joints. The rain water harvesting method was also found prone to leakage as proper drainage system was not in place. The Committee also found that the flooring in the Arrival and Departure Terminal was not proper with granite stone cracking at some places. The electrical fittings were also not properly fixed up at many places. The overall maintenance of the building was found in poor condition, despite the fact that it was inaugurated only about two months back.

As the Committee was of the view that the architectural design as well as construction shortcomings and defects and quality of work need to be verified in detail, it was decided to refer the matter to the CVC. The building was constructed by M/s IPL, Brahmaputra Infrastructure Ltd. (JV) at a cost of about Rs. 90 crore out of which Rs. 85 crore has already been paid to the contractor. This is also noteworthy that the award of the construction was finalized in October 2007 and stipulated date of completion was April 2009. However, the completion was delayed and completed in May 2012. Inauguration of the airport was done on 19th May 2012. The Civil Aviation Minister has taken a serious note of the fact that the airport was inaugurated without ensuring the complete and quality construction. The Minister has clarified to the authorities that stern action will be taken against those found guilty.

The contractor has already received almost all his money. The delay of three years itself would have invoked certain cost escalation clauses in favour of the contractor. What are your views on these developments? Will the true facts ever see the light of day? Will ALL those guilty and culpable face justice?

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