Wednesday, July 23, 2008

Keep HAL airport open: AAI

Can BIAL oppose the hand which feeds it. ? Just as BIAL used legal recourse to close the HAL airport AAI is now paying back BIAL in the same coin. Legally AAI or the government cannot open HAL unless BIAL is made to offer concessions . Using this newly found data they can turn on the screws on BIAL and Alfred Bruneer who is acting like the most incompetent Swiss national ever to set foot in India. Its about time the Devanhalli speculators exit. If they wait for HAL to open thats the end of all their paper profits and they would be stuck with illquid assets for years to come.

Keep HAL airport open: AAI
Recommends Move Till BIA Builds Additional Terminal
Anshul Dhamija & Sujit John | TNN

Bangalore: The new Bengaluru International Airport (BIA) has landed in a turbulent whirlwind with the Airports Authority of India (AAI).
The AAI has prepared a report that says that BIA’s capacity is less than what its promoters have stated, that the airport is already saturated, and that the promoters have violated a key clause in the concession agreement signed with the government. It has gone on to recommend that the old HAL airport be kept open till BIA builds an additional terminal.
The AAI report, a copy of which is with The Times of India, follows a directive by the civil aviation minister to study the capacity issues at BIA. The AAI had designated a 4-member team to conduct the study in June.
The report says that the Bangalore International Airport Ltd (BIAL) must take “immediate create an additional capacity of 10 million passengers per annum to avoid further congestion and to handle the projected growth.” The report goes on to say, “In view of the saturation of the passenger terminal, import cargo, apron and runway, it is recommended that, in the meantime, the existing HAL Airport may be permitted to operate until the time of commissioning of proposed additional capacity at the new Bengaluru International Airport.”
As per AAI’s calculations, the terminal capacity at BIA can only handle 9.78 million passengers annually as against the city’s passenger traffic of 10.12 million passengers in 2007-08. This means that since the day BIA opened on May 24, the airport has been under capacity. BIAL, on the contrary, has claimed that the airport’s capacity is 11.4 million passengers, which could even go up to handle 14 million passengers annually.
As per recommendations of the International Air Transport Association (IATA), an airport which has to handle passenger traffic of 10 million passengers should have a terminal size of 1,50,000 sqm in area. BIA, according to the AAI report, has a terminal size of barely half that at 71,310 sqm.
The report goes on to state: “BIAL revised its forecast to 11.4 million in November, 2006, for the year 2015 which deviates from the actual traffic drastically. In fact the traffic was growing as high as 43.9% when the revised forecast was made in November 2006.
As per the concession agreement para 14.2 (page-61) BIAL was supposed to provide facilities as per IATA/ICAO standards and was to provide 27.3 sqm of space per peak hour passenger (PHP), whereas the actual area provided is 19.8 sqm per PHP, which is in deviation with the concession agreement.”
As per norms followed by IATA, the capacity of an airport terminal is calculated on the ratio between the total area of an airport terminal to the number of peak hour passengers, which for any airport should be a minimum of 25 sqm/PHP.
In fact the figure of 19.8 sqm/PHP at BIA is way below that of older airports in Chennai and Kolkata which have figures of 23.15 sqm/PHP and 24.15 sqm/PHP respectively. In the new Hyderabad airport terminal, it is estimated to be 35.21 sqm/PHP.
Further,taking the terminal building in its totality,the report states that the “basement area of 18,665 sqm is not used for passenger facilitation, it is used for storage, services and utilities. Therefore, basement area should be excluded from the total terminal area which will reduce area/PHP to 14.6 sqm.”
What AAI report also said
BIA’s peak hour runway capacity is 32 movements as against current peak hour demand of 25. With anticipated annual growth rate of 25%, runway is likely to saturate during 2010-11. Immediate action should be taken for construction of second runway
Existing number of parking bays are 42 as against peak hour demand of 41 bays (26 passenger aircraft, 5 freighter, 10 buffer for contingency). Addition of 30 more bays recommended
There is imbalance between import and export cargo area which needs adjustment, that is import cargo is saturated whereas export cargo and domestic cargo have adequate capacity. It is therefore recommended that an additional import cargo capacity may be created immediately.


moti said...

Hello All,

I think the bull run for the property market is over.

Buyers need be Patience and wait.

How can sellers ask for insane prices. This is just lust for money.

Imagine buying a 2 bhk flat in farway Kandivali for Rs 1 cr?

There are problems with roads/electricity and water and not to mention the travelling is KILLING

I think that if the buyers go on a buyers strike all the builders and sellers will have to bring the prices by over 75%

Just wait. there is no logic in demanding Rs 10000.00 per square feet in Kandivali or Borivali. There is no justification.

The prices quoted are actuall of 10 years hence.

secondly the goverment is hand in glove with the builders lobby. They make laws and rules with suit the builders so they can continue with Looting buyers.

Anonymous said...

FSI of 4 granted for reconstruction of chawls on mill lands

Anonymous said...

People in India are sleeping. But soon they will wake up to a disaster standing in front of them.

This worldwide phenomenon has been basically caused by very low interest rates after 911. Indian Govt. has been following what US govt. fools were doing all these 5-6 years. US is already doomed. UK is doomed. Spain and France values have already dropped 20%. South Africa it is down more than 40%. Australia is down 20%. NZ is toast. A lot of other countries are trying to fight what they copied from stupid US Govt. capitalists.

India will soon be seeing massive drops in RE. And when it happens it will ripple all over in all sectors throughout India. My sincere advice to a lot of people who own is to cash out while they can and put the money at 11% interest rate. 1Cr will give 11 lacs per year which is very good income. No need to even work.

I would even say that it makes more financial sense even to sell your prime residence and rent the same place from your interest income at a 1/10th the EMI.

Resident Community said...

I agree with Mr. Anonymous. India will soon be seeing massive drops in the Real Estate market.

The Boss said...

So many bears getting impatient for a crash. Any tagential news is lapped up as proof that big price decline is imminent. That's utter desperation. Meanwhile the crash dreams don't seem to materialize. Time for serious home buyers to ignore all the noise and look for bargains. It won't get much cheaper than this.

mallapottell said...

lol@the boss

moti said...

Guess boss is one of those paid journalist of the builders

mallapottell said...

The Boss said...

Read this and see your crash-dreams come crashng down!

Anonymous said...

Dear Boss,
The market still has a lot of people who don't have vision. The demand will slowly taper down and it may take 6 months to one year. The low priced properties would still sell.

Once the masses know that prices are not going up anymore, 60-70% buyers will be out of the market as they were speculators and just driving the prices up. Moreover interest rates will go up more, IT sector is going to witness major layoffs and NRIs will pull back. There will be more properties for sale and as inventory increases, prices will start falling at the rate of 5-10% every 2 months.

Crash doesn't mean the whole thing pops in a second. There will be air coming out of the bubble balloon slowly for a god 3-4 years now and deflate it.

Realty Rider said...

Individuals are no longer eyeing only residential properties as a lucrative investment opportunity. Rather, it is commercial retail space that has now become hot property. We hear this often: “What’s the smarter move? Residential or commercial investment property?” It should come as no surprise that there isn’t a one-word answer to this question. You’ll arrive at your best choice – the one that maximizes your chances for success – by working through a decision process that includes some “global” issues, some local and some that are entirely personal.For more view-

Anonymous said...

Realty Rider: Real estate has become unreal estate.

Even if commercial goes up, that too will be building a bubble. Success is not counted by short time money on paper by screwing masses. You'll understand what I'm saying in 3-4 years from now. I wish our government was not sleeping and working for the corporate greedy bastards.