BUSINESS

Hyderabad intl airport to open in Q1 of 2008

By Syed Amin Jafri in Hyderabad
October 06, 2006 18:20 IST

The work on the Rs 1,760-crore (Rs 17.6 billion) Hyderabad International Airport is proceeding apace and the airport is scheduled to become operational in the first quarter of 2008.

Speaking to newsmen in Hyderabad on Friday, T Srinagesh, chief operating officer of GMR Hyderabad International Airport Limited, said that "the construction of the passenger terminal building, air traffic control and airside and runway is going on at a brisk pace and everything is on schedule."

The GHIAL has awarded the terminal building and ATC works to China State Construction Engineering (Hong Kong) Limited for Rs 615 crore (Rs 6.15 billion), and the airside and runway works to Larsen & Toubro at a cost of Rs 495 crore (Rs 4.95 billion). It has recently awarded in-flight catering to two renowned companies-LSG Sky Chef and Sky Gourmet.

The GHIAL is a joint venture company promoted by GMR Infrastructure (63 per cent), Malaysian Airports Holding Berhad (11 per cent), Airports Authority of India (13 per cent) and Government of Andhra Pradesh (13 per cent).

The company has been mandated to develop a world-class international airport over a 5,500-acre site at Shamshabad on the outskirts of Hyderabad. "All the works are expected to be completed in the fourth quarter of 2007. After trials for three months, the airport will be fully operational in the first quarter of 2008," Srinagesh explained.

In the Phase IA and 1B, the 105,300 square metre terminal will have the capacity to handle seven million passengers per annum. It will have 30 aircraft parking stands with 10 aero-bridges and 20 remote parking bays in the initial phase.

The airport will reach its full maturity in the final phase. The total built up area of 900,000 square metres will cater to annual traffic of 40 million passengers.

At 4,260 metres, the new airport will have the longest runway length in South Asia and will be Code-F facility, which can handle A-380 aircraft. The airport will have a capacity to handle 100,000 tonnes of cargo per annum in the initial phase.  It will have in-airport hotel facilities and an airport village with shopping facilities.

"Our growth strategy envisages development of an efficient airport in terms of services and facilities, a cargo hub and airline hub in terms of connectivity and scale of operations and a transshipment hub," Srinagesh said.

He announced that the GHIAL has awarded the fuel farm operations contract to the private sector giant, Reliance Industries Limited. RIL has been selected from among renowned companies such as Indian Oil Corporation, Sky Tanking, Bharat Petroleum, ONGC, Hindustan Petroleum, Swissport and WFS through a competitive bidding process. The contract is valid for a period of seven years, which can be further extended.

As per the contract, the GHIAL is setting up Open Access Model fuel farm consisting of three huge storage tanks with an initial capacity of 13,500 KL of aviation turbine fuel and hydrant in the new airport premises for supply of fuel to the aircrafts. The RIL, in turn, will operate and maintain the fuel farm, as well as provide 'into-aircraft' service.

"The Open Access Model means any oil company can supply fuel to airlines as per their agreements entered into with the latter. This model is first of its kind in India and has successfully been deployed in major international airport like Hong Kong airport.

"It has been developed in consultation with internationally reputed companies, Red Mallee, an Australian-based consultant, and Hong Kong Airport Services," Srinagesh pointed out.

Both IATA and Naresh Chandra Committee have recommended this type of model for all airports in the country. "We hope to handle seven million passengers per annum when we commission the first phase. The aircraft movements are expected to be 200 per day.

"Some of the aircraft will have re-fuelling here and some will have it elsewhere. Our business plan envisages a total volume of 300,000 KL of ATF per annum," the Chief Operating Officer explained.

P Raghavendran of RIL said that at present only the three public sector oil companies operate the fuel farms at all airports. They cater to both domestic and international airlines.

"There is of element of competition in ATF business so far. Now, the GHIAL are taking the lead in implementing the Open Access Model for the first time in the country," he added.

"This model is expected to provide a wider choice for airlines in selecting fuel suppliers, thereby causing competition among the fuel suppliers. As a result, the airlines are expected to get the ATF at a very competitive price with the highest level of service.

"This model has been very successful at Hong Kong and many other international airports," Srinagesh observed.
Syed Amin Jafri in Hyderabad

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