Thursday, August 21, 2008

Modernisation of Kolkata, Chennai airports to begin next month

Modernisation of Kolkata, Chennai airports to begin next month

Press Trust Of India / New Delhi August 21, 2008, 15:40 IST

Construction activities for modernising and expanding the Kolkata and Chennai airports by the Airports Authority of India will begin by the end of next month, Civil Aviation Minister Praful Patel said today.


"Physical construction (at these two airports) should begin by the end of September," he said after inaugurating the country's longest runway at the IGI Airport here.

Patel said the acquisition of land for Chennai airport's expansion was a state subject. "If the State Government wants (to expedite the project), they will have to acquire the land soon and give it to us."

Replying a question on the Government's recent decision to allow charging of user development fees by the private operator of the new Hyderabad airport, Patel said "We are considering the same for the new airport at Bangalore. We will examine all parameters before we take a decision."

He said Civil Aviation Secretary Ashok Chawla recently visited Bangalore to study various aspects of the issue.

Asked about airport charges proposed to be imposed by Delhi International Airport Limited and Mumbai International Airport Limited, the Minister said the issue was before the Ministry. "Based on certain parameters, a judicious decision will be taken."

Earlier, an Air India Boeing 777-300ER (extended range) aircraft became the first to land at the new 4,430-metre runway. The aircraft was welcomed by a water salute (a spray of water from both sides) while taxiing to a temporary bay.


http://www.business-standard.com/india/storypage.php?tp=on&autono=45049

Monday, August 18, 2008

New Delhi, Aug 14 (IANS) The modernisation and expansion of the Kolkata and Chennai airports will start from next month, Civil Aviation Minister Praful Patel announced soon after the Cabinet Committee on Economic Affairs approved the projects Thursday.

‘The foundation of these two projects will be done next month and its development and expansion will be completed in the next three years,’ he told reporters.

Patel also hoped that the Airports Authority of India (AAI) - developing these airports - would not need any external help to fund these projects.

The government has earmarked Rs.19.42 billion and Rs.18 billion, respectively, for the Kolkata and the Chennai airports.

For the Kolkata airport, AAI would fund 80 percent of the project cost (Rs.15.54 billion) through internal resources and the balance 20 percent (Rs.3.88 billion) through commercial borrowings.

Similarly, for Chennai airport, AAI would have 80 percent (Rs.14.46 billion) funding through internal resources and 20 percent (Rs.3.61 billion), through commercial borrowings.

‘I envisage that they (AAI) would not need any external help for these projects. This is an opportunity for the AAI to compete with the private developers. The AAI can create these two airports into models and compete with the private sector to develop world-class airports. They can even compete in the international arena,’ said the minister.

Both the projects envisage large investments and would be completed in a time-bound manner, Patel said, adding that the upgraded airports would cater to the needs of Kolkata and Chennai for the next two decades.

After completion, the two airports will be on par with those at New Delhi and Mumbai, the minister added.

Patel said the modernisation and expansion work will be done by the state-run AAI, which would also retain ownership of the two airports.

‘Only the non-aeronautical revenue and places outside the air side will be open for a public-private partnership (PPP)’ he said.

The minister said land acquisition issues have been sorted out with both the state governments.

The expansion projects at both the airports have been delayed, and Patel had in May raised the issue with the Planning Commission deputy chairman Montek Singh Ahluwalia.

He said ‘the constant objections’ on the size and scale of the project raised by the commission were responsible for the delay in the project.

Responding to a question on the possibility of a second airport around the national capital, the minister said the matter was with the Group of Ministers (GoM).

‘We are open to having an airport at Jhajjar (in Haryana) or Jhevar (at Great Noida). It all depends on the GoM’s decision,’ he said.

The GoM is looking into the intricacies of the issue, which includes legal and other contractual agreements and obligations the government has with the Delhi International Airport Ltd, which is developing Delhi’s Indira Gandhi International Airport.

Patel said the airport’s new third runway at the IGI airport would start its operations from the month end.


http://www.sindhtoday.net/south-asia/11950.htm

Government approves expansion of Chennai Airport

Government approves expansion of Chennai Airport

The Government gave its approval to the modernisation and expansion of Chennai Airport. The work which is expected to be completed within 26 months of award, will result in an additional passengers handling capacity of 14 million passengers per annum (mppa).

The airport will be upgraded to international standards; the secondary runway will be extended and made suitable for operations of large commercial aircrafts and additional parking space and taxiways to facilitate parking and movement of aircraft will be created.

It may be recalled that in May, 2007, the Committee on Infrastructure headed by the Prime Minister had decided that the Chennai Airport would be developed to international standards by the Airports Authority of India (AAI). The Public Investment Board (PIB) approved the AAI’s proposal of the Chennai Airport on 29-Jul-08.

The Chennai Airport is located at an area of approximately 1152 acres with two runways of 3658m and 2085m land. It has separate
International and Domestic terminal buildings with capacity of 3 mppa and 6 mppa respectively. International traffic at the Chennai Airport in 2007-08 was 3.41 million and Domestic traffic was 7.25 million.

Both the terminals are thus, saturated. The Airport has witnessed a growth of 10.7% pa of International traffic and of 24.4% pa growth of Domestic traffic over the last five years. It is estimated that Chennai Airport will further witnessed a combined growth of around 17.13% pa (20% Domestic and 10% International) till up to 2011-12,following which the growth rate is expected to taper to 11.10% pa (12%


Domestic and 8% International) up to 2016-17.

On the basis of these growth projections, the proposal for the Chennai Airport envisages an enhancement of runway capacity, apron capacity and terminal building capacity. The secondary runway is proposed to be extended by 832 m (to make a total runway length of 2917 m) across

A Domestic terminal building to handle 10 mppa is being constructed in addition to the existing Domestic terminal to enable the airport to handle 16 mppa on the Domestic side. The International terminal building is also proposed to be extended to cater to an additional 4 mppa. The airport will thus be able to cater to 7 mppa on the International side. A total of Rs.1077.16 crores is estimated to be spent on the new Domestic terminal, extension of the International terminal and facelift of the existing International and Domestic terminals.

The extended International terminal building is expected to saturate in 2017-18 and the combined Domestic terminal building will saturate in 2012-13. The project completion period is estimated to be 20 months for airside works and 26 months from terminal building works, from the date of award of work.

http://indiaaviation.aero/news/airline/13367/59/Government-approves-expansion-of-Chennai-Airport

Thursday, August 14, 2008

Cabinet approves Kolkata, Chennai airport upgrade

New Delhi, Aug 14 (IANS) The Cabinet Committee on Economic Affairs (CCEA) Thursday approved the modernisation and expansion of Kolkata and Chennai airports.

The government has set a deadline of 30 months for the Kolkata airport and 26 months for the Chennai airport. The work is expected to start next month.

The development of Kolkata airport will cost Rs.19.42 billion and Chennai Rs.18 billion.

Minister for Information and Broadcasting Priya Ranjan Dasmunsi told reporters that the expansion of the Kolkata airport would increase its passenger handling capacity to 20 million fliers a year.

Chennai will have a new passenger capacity of 14 million annually, he said.

The Public Investment Board (PIB) had earlier approved the Kolkata airport upgrade proposal May 30, while Chennai airport moernisation was approved July 29.

Regarding Kolkata, Dasmunsi said the Airports Authority of India (AAI) will bear 80 percent of the project cost (Rs.15.54 billion) through internal resources and the balance 20 percent (Rs.3.88 billion) through commercial borrowings.

Similarly, for Chennai airport, AAI will have 80 percent (Rs.14.46 billion) funding through internal resources and 20 percent (Rs.3.61 billion) through commercial borrowings.

AAI has already spent Rs. 320 million and Rs.200 million towards consultancy and other related work for the two airports.

Dasmunsi said the airports will be upgraded to international standards and secondary runways will be extended and made suitable for operations for large commercial aircraft.

Moreover, navigation facilities will be upgraded, additional parking space and taxiways will be created, and road and rail connectivity to the city will be improved, he said.

In April 2007, the Committee on Infrastructure (COI) headed by Prime Minister Manmohan Singh had decided that AAI would develop the Kolkata airport to international standards using its own resources.

The decision on Chennai airport was taken the following month.

Earlier, the PIB had been assured of AAI’s financial performance and its capacity to achieve financial closure for the project through internal resources and borrowing on its own strength and execute the project within the stipulated time.

However, both the projects have been delayed.

Minister for Civil Aviation Praful Patel raised the issue in a letter to Planning Commission deputy chairman Montek Singh Ahluwalia.

He said it was ‘the constant objections’ of the planning commission on the size and scale of the projects that caused the delay.


http://www.sindhtoday.net/south-asia/11902.htm

Viable project or white elephant?

A. Ranganathan

The Tamil Nadu Government and the Airports Authority of India are going full steam ahead with the Chennai airport expansion plan. While the former seems unaware of the way Chennai airport looked during the monsoon in November 2005, the latter is quoting numbers that are inflated and not based on market forces.

To quote from a recent article in The Wall Street Journal: “Hurt by rising fares, the number of domestic passengers in India rose by only 7 per cent in the 12 months ended April, according to the Airports Authority of India. The growth rate for the previous 12-month period was 31 per cent, and in the 12 months before that, it was 59 per cent. Airlines are cutting routes, idling planes.” Even Mumbai and Delhi, as well as the privately-owned Bangalore and Hyderabad airports, are feeling the heat.

In the early part of this century, when oil was trading at $10, the fare between Mumbai and Delhi was around Rs 9,000 and airlines were making a huge profit. The low-cost carriers came into the picture and brought this down to less than Rs 3,000 and the full-service carriers had to make drastic changes in their fares.

The result is there for everyone to see. You cannot sell cheap tickets to fill up an aircraft and burn costly fuel to fly the passengers to their destinations.

Going by the Wall Street Journal article, it is apparent that projections are made on a single year’s figures, without vision.


Weather conditions and lay of land


Let us analyse the potential for Chennai airport. The airport expansion area is located at a lower level than the main runway and the proposed parallel runway. The main runway elevation is around 13 metres above sea level and the parallel runway will be at an elevation of 11 metres. The current secondary runway is sloped downward from the main runway and it has to cross the Adyar river which has an elevation of 2 metres.

The International Civil Aviation Organisation standards require the runway surface to be at a minimum height of 1 metre over the highest flood level across a water body.

If the secondary runway’s level is not raised sufficiently, it is going to be flooded in any heavy rain condition. It will also mean that aircraft will not be able to reach or use the parallel runway. People have forgotten what happened to Chennai airport during the deluge in 2005.

This becomes a Catch-22 situation. If the AAI does not raise the level of the secondary runway to meet ICAO standards, the secondary runway and the parallel runway will become unusable! If it does raise the level, the cost of the whole project is likely to multiply several times, which has not been budgeted for.

The Chembarambakkam lake overflow is through the Adyar river. If the flow area is restricted by the secondary runway or blocked to a large extent, the flooding on the west, south and south-east areas are going to be extensive.

Growth Projections


The whole programme is based on the inflated growth figures given out by the Ministry of Civil Aviation. Unfortunately, the scene has changed completely, with the rise in oil prices. In an article in April, when crude was hovering around $100 a barrel,

I had pointed out that the airlines are not taking the cost of fuel into account and the projections are likely to crumble. Oil prices are not likely to drop below $100 a barrel in the next year or so.

The airline numbers in India are likely to fall below the 50 per cent mark and the traffic potential in Chennai could drop drastically.

All the airlines in India are in consolidation mode. Air Sahara and Air Deccan have been gobbled up. And it may just be a matter of time before the other smaller airlines are taken over by bigger players. The low-cost carrier concept in India is a misnomer.

Except for the snacks and food, there is no difference in operations costs. One has to pay all the charges — import duty, leasing cost, landing charges, etc.

Cost of Expansion


The AAI has stated that 80 per cent of the Chennai Airport expansion cost will be funded from its own kitty and it will borrow from the market the other 20 per cent. The latest monetary policy spelt out by the RBI is going to make this an expensive exercise.

The AAI has also lost a big chunk of its income source from Delhi, Mumbai, Hyderabad and Bangalore. Even the private players that invested in these airports, based on the inflated traffic projections, are feeling the heat.

There is a question mark as to what will be the recovery period of the high investments. India does not even have a clear cut Civil Aviation policy. It keeps changing, day by day, at the whims and fancies of the Government in place.

Let us take the average aircraft movements in Chennai airport. The AAI pitches for the extension of the secondary runway and the building of the parallel runway, to increase the capacity to 50 movements an hour.

In January 2008, when traffic was at its peak, Chennai had a maximum of 28 movements an hour. This was during the peak hours and for just three hours in a day.

The rest of the day, the average hardly made double digits. It has been pointed out that a traffic capacity of 50 can be achieved with proper air traffic management and efficient ground structure design.

A former senior member of the Airports Authority has stated that Chennai airport, at the present location, is incapable of taking the additional passenger facility for 50 movements in an hour.

So, even if there are runways to cater to aircraft movement, there is not enough space to build the additional infrastructure required to handle all the passengers.

All airlines have cut the frequency of operations. Air travel between Chennai and nearby airports such as Bangalore, Coimbatore and Hyderabad has dropped drastically because of the costs and the time factor.

The door-to-door time taken to travel between Chennai and Bangalore by air takes almost five hours now. The cost has also escalated to almost Rs 6,000, including the taxi fare at both ends.

Train travel, without any hassles of security or baggage allowance, takes just an additional hour and the cost is just a tenth. One can travel very comfortably by the Shatabdi Express for just Rs 600!

Personal egos seem to override logic and reason in Indian aviation. Posterity will tell if the expansion programme of Chennai airport is a viable project or a white elephant.

(The author is an airline captain with 35 years flying experience.)

http://www.thehindubusinessline.com/2008/08/13/stories/2008081351900900.htm

Tuesday, August 12, 2008

Chennai airport upgrade may lag passenger traffic growth

Chennai airport upgrade may lag passenger traffic growth

The Rs 1,808-crore modernisation and expansion plan for Chennai airport, which was recently cleared by the Public Investment Board (PIB) and expected to begin this September, may not be sufficient to cope with projected growth in passenger traffic.

Annual domestic and international capacity at the modernised airport, which will be done by the Airports Authority of India (AAI), is being raised from the current 9 million to 23 million by November 2010. But it is estimated that domestic capacity would be saturated in two years — that is, by 2012.

The modernisation plan includes constructing an additional domestic terminal, which will increase annual capacity from 6 million currently to 16 million, an addition of 10 million. But this capacity will be enough to handle the growth in passenger traffic till 2012, when it will hit around 16 million.

The international terminal will also increase annual handling capacity from 3 million currently to 7 million. This capacity, however, will be enough to handle passengers till 2017-18, when the number of passengers will hit 10 million.

A proposal for a new airport in Sriperumbudur is also unlikely to ease matters. For one, if the approvals come through next year at the earliest, the airport will only be ready by 2014. This will leave a two-year period when passenger traffic will exceed capacity in the domestic terminal.

This rationale was given to the fministry when it asked how the construction of the second airport would impact the first.

“This could be a problem. But we still have the international terminal as a back-up. So if a second airport does not come up by then, we can shift some of the air traffic and airlines to the international terminal,” said an AAI official working on a contingency plan.

The AAi has, however, asked the state government for additional 940 acres of land to build another parallel runway that would increase the saturation life of the airport by another ten years.

It also said that given the land constraints, the terminal area would fail to match international standards or those set by the Delhi airport or the greenfield Hyderabad and Bangalore airports.
The overall unit area of the per peak hour passenger, which means the area one passenger gets at the terminal during peak hours, would come to 16.22 square metres (sq mt) against international standards of 25 sq mt.

On the international side, the numbers are 22.83 sq mt against a global norm of 30 sq mt.
The upgraded Delhi airport will provide peak-hour passengers 36 sq mt, Hyderabad 26 and Bangalore 35.21.

The upgraded Chennai airport will be the first in India to have a runway built over the Adyar a river.

http://www.business-standard.com/india/storypage.php?autono=331273&chkFlg=

Monday, August 11, 2008

Chennai Airprot Expansion Work to Start in September


www.dinamani.com

No privatisation of Kolkata, Chennai airport

No privatisation of Kolkata, Chennai airport

Statesman News Service NEW DELHI, Aug. 11: Ruling out privatisation of Kolkata and Chennai airports on the lines of Delhi and Mumbai, the Union civil aviation ministry today said both these airports would be developed by the state-owned Airport Authority of India (AAI).

Announcing this at a meeting with the consultative committee of members of Parliament, the civil aviation minister, Mr Praful Patel, said the AAI would start the work on these mega projects next month.

The modernisation plans of Kolkata and Chennai airports have been cleared by the Public Investment Board and detailed project reports have already been submitted to the government for approval, Mr Patel said.

The Cabinet Committee on Economic Affairs is likely to clear these projects by the end of this month. The minister said trial runs on the new third runway of IGI Airport would begin from 21 August.

Once this runway gets operational, it would go a long way to ease the air traffic congestion over Delhi airspace. On the requirement for a second airport in Delhi, Mr Patel said a group of ministers (GoM) was looking into the legalities of setting up of a second airport in Delhi in view of the agreements the government had signed with the GMR-led consortium to modernise IGI Airport.

Some members of the consultative committee raised the issue of construction of an airport at Jhajjar in Haryana, close to the national capital. Some said the ministry should not allow any new airline to be given a licence to launch operations or induction of new aircraft till the required infrastructure was put in place.


http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=218045

No privatisation of Kolkata, Chennai airport

No privatisation of Kolkata, Chennai airport

Statesman News Service NEW DELHI, Aug. 11: Ruling out privatisation of Kolkata and Chennai airports on the lines of Delhi and Mumbai, the Union civil aviation ministry today said both these airports would be developed by the state-owned Airport Authority of India (AAI).

Announcing this at a meeting with the consultative committee of members of Parliament, the civil aviation minister, Mr Praful Patel, said the AAI would start the work on these mega projects next month.

The modernisation plans of Kolkata and Chennai airports have been cleared by the Public Investment Board and detailed project reports have already been submitted to the government for approval, Mr Patel said.

The Cabinet Committee on Economic Affairs is likely to clear these projects by the end of this month. The minister said trial runs on the new third runway of IGI Airport would begin from 21 August.

Once this runway gets operational, it would go a long way to ease the air traffic congestion over Delhi airspace. On the requirement for a second airport in Delhi, Mr Patel said a group of ministers (GoM) was looking into the legalities of setting up of a second airport in Delhi in view of the agreements the government had signed with the GMR-led consortium to modernise IGI Airport.

Some members of the consultative committee raised the issue of construction of an airport at Jhajjar in Haryana, close to the national capital. Some said the ministry should not allow any new airline to be given a licence to launch operations or induction of new aircraft till the required infrastructure was put in place.


http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=218045

Thursday, August 7, 2008

Contac Human Rights Commission

State Human Rights Commission
Thiruvarangam143,
P.S. Kumarasamy Raja Salai(Greenways Road)
Chennai 600 028, Tamilnadu.
Phone : 91-44-2495 1484
Fax : 91-44-2495 1484
E-mail : shrc@tn.nic.in