A STUDY ON REVENUE GENERATING

OPPORTUNITIES IN AN AIRPORT WITH SPECIAL

FOCUS ON THE BANGALORE INTERNATIONAL

AIRPORT LIMITED

PROJECT REPORT

Submitted by

SINDHU.C.D

URN: 0801010021

In partial fulfillment for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

IN

AIRLINE AND AIRPORT MANAGEMENT

Guided by

Dr.G.Vanishree

Professor & HOD

Vignan Institute of Technology & Aeronautical Engineering

Vignan hills, Nalgonda distt, AP - 508284

Submitted to

DIRECTORATE OF ONLINE AND DISTANCE EDUCATION

ANNA UNIVERSITY OF TECHNALOGY COIMBATORE

COIMBATORE – 641047.

FEBRUARY 2011

ii

ANNA UNIVERSITY OF TECHNOLOGY COMBATOREDRECTORATE OF ONLINE AND DISTANCE EDUCATIONFEBRUARY 2011.

This is to certify that the project entitled A STUDY ON REVENUE

GENERATING OPPORTUNITIES IN AN AIRPORT WITH SPECIAL

FOCUS ON THE BANGALORE INTERNATIONAL AIRPORT LIMITED

is the bonafide record of project work done by Ms. SINDHU.C.D URN:

0801010021 of MBA during the year 2010-2011.

Signature of the Signature of the

DIRECTOR,DODE PROJECT GUIDE

Submitted for the Project Viva-Voce examination held on _________________.

INTERNAL EXAMINER EXTERNAL EXAMINER

BONAFIDE CERTIFICATE

iii

I affirm that the project work titled A STUDY ON REVENUE GENERATING

OPPORTUNITIES IN AN AIRPORT WITH SPECIAL FOCUS ON THE

BANGALORE INTERNATIONAL AIRPORT LIMITED being submitted in

partial fulfillment for the award of the degree of MBA is the original work carried

out by me. It has not formed the part of any other project work submitted for

award of any degree or diploma, either in this or any other University.

Signature of the

Candidate Sindhu.C.D

URN: 0801010021

I certify that the declaration made above by the candidate is true.

Signature of the Guide

Dr.G.Vanishree

Professor & HOD

Vignan Institute of Technology & Aeronautical Engineering

Vignan hills, Nalgonda distt, AP - 508284

DECLARATION

iv

ACKNOWLEDGEMENT

I am very thankful to my project guide Dr.G.Vanishree for being a source of constant support to

me during the project I am also thankful to all respondents for their support and positive

response towards my endeavor, in spite of their busy schedules and also for providing me all the

necessary information and details in order to successfully carry out my project.

I would specially like to express my gratitude to my husband Mr.K.G.Suresh Kumar, Bangalore

International Airport Limited, for his guidance in carrying out the project as well as advising me

throughout the duration of the project. Without his sincere and untiring help and constant

encouragement the project could not have been successful.

Sindhu.C.D

v

TABLE OF CONTENTS

Chapter no.

1

TITLE

Abstract

List of tables

List of Figures

Introduction

Page

no.

vi

vii

viii

1

1.1 Objective 5

1.2 Theoretical Background 6

1.3 Company profile 19

2 Analysis and Interpretations 37

3 Findings 49

4 Conclusion 51

5 Suggestions 53

References 56

Annexure 58

SYNOPSIS

vi

The first successful flight of airplane by the Wright brothers in December 1903 changed

the way men travelled .With the construction of large capacity airplane the need for

large, well laid out airports came up where ticketing, embarkation, customs, Immigration

were set up. With only an initial cost component involved in setting up an airport, the

airports started recovering the cost in subsequent years and started earning profits from

the fee generated by the airlines and airplanes using the airport. With the economic

turmoil in the nineties, airports started losing their incomes as airlines started defaulting

on their payments as their survival itself became doubtful and many airlines wound up

due to low seat factor, rising fuel cost and other operational cost. The need to renovate

and look in to non-aero revenues was felt for the airport survival. Some of the airports in

Europe started adopting innovative methods in the nineties itself and started showing

encouraging results.

BIAL became operational on 23 May 2008 and now, has taken up expansion

plan and is in an enviable position to adopt successful marketing methods taken up by

other airports. To get a rough picture of this, a questionnaire was prepared and circulated

among 100 randomly selected people at the airport. The results were collated and the

following points emerged which can be considered into the expansion plan of BIAL to

achieve the leading edge and to become the favorite destination for people around the

world. The profile of the people coming to the airport is of economically well-off type,

tech-savvy, well travelled or well informed of the latest trend in lifestyle globally. They

are eager to lap up the idea of airport not just a transit point for travelers but also a leisure

destination where one can spend quality time with relatives and friends even if it means

shelling out extra money. So the airport authority can go ahead with innovative, value

added service to the public without worrying about the viability.

LIST OF TABLE

vii

1.1 Global Airport Revenue -2007, p-8.

1.2 Salient features of the passenger terminal, p-23.

viii

LIST OF FIGURES

1.1 VIP Lounge, p-25.

1.2 The Reserved Lounge, check- in Hall,p-26.

1.3 The Kingfisher Lounge, Domestic Departure,p-27

1.4 The Oberoi lounge, International Departure,p-28

1.5 Air India Lounge, Domestic Departure,p-29

1.6 VVIP Terminal, Airside, p-30.

ix

CHAPTER – 1

INTRODUCTION

1

CHAPTER – 1

DEFINITION OF PROBLEM

As per Philip Kotler, a well-known author in the field of marketing “Marketing

is all activities which are aimed at the satisfaction of buyer’s needs and wishes by means of

trading processes”.

AIRPORT MARKETING:

Airport marketing is a niche from this perspective. The traditional airport concept offers core

trading products, namely transfer of passengers and goods. Today, airports have become

commercial enterprises with value propositions, specifically designed to target specific market

segments. In the latter part of the 1980s, inadequate runway capacity, congested terminals, ATC

control delays generated poor publicity for airports in Europe, the United States and to a lesser

extent, Asia. It would be valuable to assess airport financial performance in terms of the returns

on the assets employed. However, in practice it is very difficult to arrive at the true asset value

of airports in different countries. While many of the larger US airports have been profitable for

2

many years, the airport-use agreements which some US airports have with their airlines prevent

them from earning large profits. Several do little more than break even as a result. The published

financial results of the larger and apparently profitable airports may in many cases mask the true

economic performance even of those airports. This may be so where an airports cost have been

underestimated for the following reasons:

1) At many airports, particularly those still run by government departments, grants received

from international agencies or even the airports own government may not appear as a cost in the

airports accounts. Assets financed from such grants may not be charged a depreciation cost.

Furthermore; such grants may be interest free. Another shortcoming in accounts may arise where

government grants or subsidies are used to cover up annual operating losses.

2) Where services at an airport are provided by other government departments for eg; RWY

maintenance by PWD, the airport may not be charged in some cases. These costs may well not

be reflected in the airports accounts.

3) The ATC especially, aerodrome, approach control services is operated at a loss by the

respective civil aviation departments. Including such losses in airport accounts would reduce or

eliminate the profits.

The two main strategic business units managed by an airport enterprise are known as the

aviation-related and non-aviation related business.

AVIATION RELATED ACTIVITIES:

Landing fees, ATC fee, Passenger and cargo landing fee, Housing and handling fee.

3

NON-AVIATION RELATED ACTIVITIES:

Rents from additional spaces to airlines, general sales agents, catering firms,forwarders,cargo

operators, tour operators, travel agents, rents and commissions from various commercial

ventures like boutique, duty free shops,bars,parking site etc.,Direct sales arising from shops

owned or managed directly by airport authority.

IMPACT OF ECONOMIC CRISIS ON AIRPORTS

2008-2010 is likely to be lost years in terms of growth.

Airport revenue decline in all areas due to fewer passengers, fewer aircrafts, smaller/lighter

aircrafts, reduced spending overall and per head.

Operating costs remain high which weighs on the profits.

Safety, security and service quality remain high on priority

AERONAUTICAL OPERATIONAL COST VS.REVENUE

High level of fixed operating cost due to personnel and maintenance requirement for safety

and security.

Airport industry operating cost absorbs 60% of total airport industry revenues.

Only 50% of total airport industry revenue generated by aero charges.

There is no or low profit margins.

Constant pressure to keep the user charges low while on the other hand improving standards

and facilities.

In most regulatory spheres, the customer is the end-customer, e.g. energy,

telecommunications.

In contrast, in aviation, the ‘user’ is frequently identified as the airline.

4

Airlines, themselves are operating in the red and are not in a position to remit the aero

charges to the airport.

The IATA figures below show the 2009 figures and forecast for 2010.

The IATA announced a revised outlook for the global airline transport industry with losses

of US$ 4.7 billion in 2009.This is significantly worse than IATAs forecast for a US$ 2.5

billion loss in 2009, reflecting the rapid deterioration of the global economic conditions.

ASIA PACIFIC

Carriers in this region continue to be hardest hit by the current economic turmoil and are

expected to post losses of US$1.7 billion. Overall; the region is expected to see a 6.8% fall in

demand but only a 4.0% drop in capacity.

The IATA revised its financial outlook for 2010 to unexpected US$ 5.6 billion global net losses.

The above figures shows airlines are going deep into the red and recovery is going to be slow.

Thus airlines will continue to default on aeronautical fees payments like landing,

ATC, facilities fees etc. which will in turn bleed airport operators who rely more on aeronautical

revenue.Govt.owned airports will continue to operate in the red due to the support from the

govt.Private operator will not be able to sustain on aeronautical revenue alone.Infact they will

have to make the non-aeronautical revenue model a major part of their revenue generating

source.

Objectives of study

To find out why airport revenue is fully dependent on the performance of the airlines.

To find out an alternate source of income for airports.

To find out ways to make right use of the available space in an airport.

5

To make airports more customers oriented.

To treat travelers as potential shoppers.

To consider meeters and greeters as potential customers.

Scope and limitations of study

The scope is very limited because attitude of the people change according to time and

circumstances.

The study is restricted to Bangalore and the International airport and that too among 100

respondents.

The study is conducted for 45 days.

The study is restricted to a certain area which will not give an accurate picture of the entire

country.

1.2THEORETICAL BACKGROUND

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An airport is a location where aircraft such as fixed-wing aircraft, helicopters and

blimps take off and land. Aircraft may be stored or maintained at an airport. An airport consists

of at least one surface such as runway, a helipad, or water for takeoffs and landings and often

includes buildings such as hangars and terminal buildings. Larger airports may have fixed base

operator services, air traffic control and passenger facilities such as passenger check-ins,

emigration, customs, restaurants, lounges and emergency services.

AIRLINES:

Airlines are company or corporations who run aircrafts of different sizes as per the passenger

size in that particular route.Travellers prefer air travel over road, rail or sea because of speed,

convenience and long distances. These aircrafts land and take off from places called airports.

The airports provide all service for a smooth take off, landing and transit of the aircraft and

passengers. Due to the sheer size of the aircraft and its passenger capacity airports are generally

giant structures consisting of terminals, concourse connecting to aero bridges, skywalk etc,

runway, taxi track, fuel farm, cargo sheds, hangars etc.Other expenses is the power and water

requirement to run an airport. Operating an airport requires substantial investment and

continuous investment for retaining manpower and latest technology to keep up the security and

safety standards.

AIRPORT TERMINAL:

An airport terminal is a building at an airport where passengers transfer between ground

transportation and the facilities that allow them to board and disembark from aircraft. Within the

7

terminal, passengers purchase tickets, transfer their luggage, and go through security. The

buildings that provide access to the airplanes are called concourses or terminal. Here the

passengers spend their time doing the formalities for boarding and then wait for the

announcement for boarding. Nowadays all airlines require the passengers to be available at least

02 hrs for domestic and 04 hrs for international flights due to the heightened security checks. So

a passenger has more time in his hand waiting at the terminals.

MEETERS AND GREETERS:

The people accompanying up to the airport or assembled to receive the passenger from at the

airport are called meters or greeters. In India where joint family system of living is still prevalent

every journey is a celebration and the whole family and sometimes the neighborhood turns up at

the airport for seeing them off or to receive the passenger.

REVENUE:

The revenue for operating an airport comes basically from the airline operating in the form of

landing, housing fees, navigational & ATC fees. But with the recession setting in airlines have

lost passengers resulting in low load factor. Airlines operational costs remain the same for that

particular route regardless of whether the aircraft is full, half or a couple of passengers. This led

to heavy losses for the airlines and many wound up operations. The remaining defaulted on

payment to the airport. The airport operators had no other alternative other than to bear the

losses keeping in mind the loss in load factor and also there were not many airlines operating

now.

8

The latest survey published by Airports Council International underlines the vital role of non-

aeronautical revenues as a proportion of airports income.

The 13th edition of the ACI Airports Economic Survey shows that in 2007,non-aeronautical

revenues among airports worldwide was US$40.5 billion, or 48% of all airport revenues-a

proportion that remained constant when compared to 2006.

GLOBAL AIRPORT REVENUE-2007

Aeronautical Non-aeronautical % of non-aero revenues

42US$ billion 40.5US$ billion 48.3 %

Table-1.1

The survey also reports that airports held down airline charges to less than US$ 18 billion in

2007(of the total airline operating cost of US$488 billion, as reported by IATA),which means

that just 3.5% of airline operating costs are associated with airport user charges.

ACI said: “These aircraft-related revenues are below actual operating expenses incurred, and

therefore passenger fees along with airport non-aeronautical revenues are subsidizing the

aircraft-related charges.

THE SOLUTION:

9

A planned, well researched method can be adopted by the airports from enhancing their revenues

from non-aeronautical to making them a main revenue generator and slowly reducing the

dependency on aeronautical revenue.

The revenue method from non-aeronautical methods can be broadly categorized into the

following:

RETAIL, REAL ESTATE AND SERVICES.

Suffice to say that all three are interconnected.

RETAIL:

Developing a concessions program that goes beyond industry standards requires thoughtful

planning, a strong customer orientation and hard work

This can be divided into two i.e., inside the terminal and outside the terminal or air side and land

side in aviation jargon.

1.2.1 INSIDE THE TERMINAL:

Already a proven business model exists at all airports worldwide inside the terminal.

Some of the airports have come up with innovative methods adapted to their region which has

generated good revenues for the airport.

Some ideas which can be adopted by an airport are:

10

KIOSK APPROACH :

Some examples of new concessions with lower capital costs are –

- Coffee bars, snack bars (food concepts without kitchen).

- Retail kiosks like small gifts, dress accessories, ladies make up kits, sunglasses, perfumes,

books .

- Chair massages concessions:

They provide an open site for quick, relaxing tune-upside is required to be taken mainstream,

bring it out from behind closed doors, make it visible, affordable, accessible, fun and healthy.

- Sleeping units

Tenant shall use the premises to rent private rooms that include desk top or wi-fi,electrical &

data outlets and a bed and bath without any frills, focus being on cleanliness, promptness and

good service i.e., helpful staffs.

Advantage of kiosks:

- Flexibility, because no eviction necessary, short time concept, termination as per

convenience, partial termination if offered multiple space, relocation clause so that one can

move kiosks if needed like if an airline reduces or cancels service.

- Revenue structure can be same as normal concessions i.e., percentage of gross profit.

- Reduces administrative problems for airport property and accounting staff.

- Reduced capital cost:

11

- Little or no capital improvements required of concessioners or airport. In tight credit market

you can accommodate entrepreneurs who don’t have access to large amount of capital.

- Short start up time, can be just rolled in compared to the time taken for design and

construction of a permanent structure.

- Abandoned spaces can be made good use of.

ADVERTISING PROGRAMS:

Airport advertising can reach an exclusive and upscale audience, and can be an important

complement to the standard media mix. With longer dwell times, airport customers can now

take the time to read advertisements. Modern airport advertising programs specialize in the

sales and maintenance of advertising sites at airports. High visibility spaces like the waste bins,

baggage trolleys,banners,moving walkways, escalators and even web sites which don’t spoil the

aesthetics can be used for short and innovative advertisements. The building facade on the

outside i.e., towards city side can be plain or built to keep up with the local flavor and regional

tastes. The airside face of the terminal building along with the gates, aero bridges, transfer

buses and other large vehicles used by the ground support equipment company can be used for

innovative, visible advertisements which can be seen by the arriving and departing passengers.

OPTIMIZE TECHNOLOGIES:

Technological innovations also offer opportunities for airport revenue enhancements.

Touch screen directories: Touch-screen airport directories provide passengers with a complete

directory and way finding system. Most systems include a directory of area hotels, car rentals,

restaurants and shopping, as well as area maps. Some listings are even linked to a floor plan

showing the current location as well as a guide to their desired destination. Also available are

12

real-time flight information displays, including arrival and departure status and gate

information. Information can be viewed interactively with a touch screen interface. The touch-

screen kiosks require less space and provide tremendous customer services as well as another

revenueopportunity.

Wi-Fi applications: Airports that are providing wireless internet service for travelers find that

short term contracts allow them to assess their needs as technology and the needs of users

evolve. Under some agreements, the airport receives a percentage of the user fees.

Opportunities also exist to provide Wi-Fi for free, but also to sell advertising on the launch

page through the use of a simple “ad bar” at the bottom or top of the screen.However,this needs

to be nonintrusive and must avoid pop-ups.

iFIDS: Internet –based Flight Information Display Systems provide real-time airline

information through the use of the Internet, eliminating the need for information technology

investment and infrastructure. The cost-effective kiosks can be configured to display multi

media images and text messages offering a tremendous revenue potential.

Banners draped across the sky bridge or on the exterior of the terminal building are raising the

bar on non-aeronautical revenues and are quickly becoming the newest form of airport

advertising that gives “ownership” to a specific brand name. Furthermore, advertisements can

be used to improve the airport’s image and propose modern and creative ideas to travelers. In

Johannesburg, South Africa, advertising has been placed on unpaved airfield land to maximize

advertising revenues.

13

1.2.2 LANDSIDE RETAIL OR REAL ESTATE:

Here lies a goldmine of opportunities if in possession of large amount of land

which holds true for a Greenfield airport which usually is sited in a sparsely populated area

with large tract of waste lands.

The following are some of the opportunities:

Commercial development and land use:

To optimize revenue generated from commercial sources, one should adopt policies and

practices that can unlock the considerable potential that exists within many airports to fully

develop and exploit commercial activities to increase revenue. A number of airports have

developed portions of their airport properties to accommodate nonaviation commercial

enterprises. The type of businesses found on airport property includes:

Industrial uses

Import and export

Manufacturing

Warehousing

Research and development

Cargo facilities

Bulk storage

Outside storage

Commercial uses

14

Restaurants

Commercial office spaces

Hotels and motels

Recreational centers

Training facilities

Small business centers

Retail sales

Industrial businesses

Car rental agencies

Automobile dealers

Golf courses

Movie theaters

Recreational and training facilities

Airports may have opportunities to generate and sell energy and utility services to tenants,

nearby businesses or communities or regional utilities at a net profit. For example:

An airport could purchase utilities wholesale from the local utility company and sell the

utilities to tenants at the retail utility rates they would have paid the utility company.

An airport steam plant could be sized to produce a cost effective steam district to nearby

hotels or other large institutions.

Electricity from solar or wind sources could be generated on airport property to offset airport

electricity or costs, or be sold to the local electric utility and tenants. As restrictions on

emissions increase, local utilities may be willing to subsidize airport investment in alternative

energy equipment on airport property.

15

PARKING REVENUES:

Parking revenues are the most significant sources of nonairline revenues at airport .Although

parking has long been a revenue source for airport operators, recent innovations provide further

opportunity to enhance parking revenues. some of the innovative ideas used successfully at

airports around the world are:

PREMIUM PARKING SERVICES:

Valet parking: Many airports offer valet parking that allows a customer to drop off their car at

the terminal curbside and upon the customer’s return, retrieve their car at this same location.

Valet services are typically popular among business travelers and can benefit airport operators if

vehicles are stored in underutilized portions of a garage.

Monthly or corporate reserved parking: Several airports sell monthly or corporate access cards

and guarantee that card holders can always find an empty space in the convenient parking area

reserved for their use. Card holders are charged a premium rate often a monthly fee to gain

access to the reserved space. Airports have found that this service is popular with patrons and

can generate significant additional revenues compared with standard rates.

Discount parking and loyalty programs: Private airport parking companies have offered

discount coupons and loyalty (frequent parking) programs for many years. Parking based loyalty

programs are similar to frequent flyer programs in that they offer repeat patrons reduced rate

parking. Alternatively, the frequent parking points can be applied to goods and services

available in the airport in the form of discounts on concessions.

Internet based parking reservation: In Europe airport parking patrons can use the internet to

reserve and pay for parking in advance of their arrival at the airport. In the United States, many

16

private airport parking companies also use the internet to allow prospective customers to

reserve and pre-pay for parking.

Parking guidance system: To reduce the time patrons spend searching for an empty space

airports are installing changeable message signs activated by low cost overhead vehicle

detectors that clearly display space availability for each space .These guidance systems result in

better utilization of the available spaces, rather than requiring patrons to conduct random

searches across large floors or garages.

TERMINAL CONCESSIONS:

Although airlines are currently struggling with yields, labor issues, and rising fuel costs,

passengers are returning in record numbers. Today, airport shoppers are recognized as a

lucrative market and airport retailing is evolving to meet that market. Concession sales have

increased dramatically as airlines discontinue meal services and changes in airport security

require that passengers arrive early, consequently finding themselves with extra time in the

airport and being a captive audience to the products and services offered by an airport’s

concessionaires.

POTENTIAL CUSTOMERS:

The people accompanying up to the airport or assembled to receive the passenger from at the

airport are called meters or greeters. In India where joint family system of living is still

prevalent every journey is a celebration and the whole family and sometimes the neighborhood

turns up at the airport for seeing them off or to receive the passenger. Even though the entry is

restricted the meeters and greeters wait outside the terminal till the aircraft takes off. They

spend a great deal of time doing nothing other than waiting. Human psychology dictates that

17

the meeters, greeters and passengers are in a state of sadness over the separation and travel

whatever the circumstances may be.A diversion in the form of shopping or entertainment will

surely go a great way in engaging the people and turning them into prospective shoppers or

customers. Every one cannot afford premium jewellery, apparel or electronic goods available at

the duty free shops inside the airport, but window shopping surely diverts the mind. This may

turn them into a future prospect for shopping as the airport experience will help in instant recall

of the brand and also the shop location immediately over other locations. Frequent travelers

won’t bother to revisit these places unless he has a particular thing in mind to buy. They too can

be turned into customers if promised with easy and fast shopping experience by offering

innovative and attractive marketing techniques.

Some of the format workable outside the terminal to attract customers is:

Shopping mall concept:

A shopping mall concept store outside the terminal will convert the people at the airport into

customers and bring in the footfalls. The airport needs to lease out the place to a reputed and

experienced entity in running the mall. Revenue can be worked out on a profit sharing method

instead of rent or fixed fees or minimum fees. This will give great flexibility to the mall

operator depending upon the turnover. Here one can add the airport employees amounting to

2000 to 4000 in numbers as customers some time or other. Small concessions in the form of

coupons, food pass with tie-ups with third party players will assure loyalty to the airport shops.

Multiplex:

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A multiplex on the outset may seem a losing business model at an airport but there is great potential

if an aeropolis or airport city is part of the plan. The passengers or people accompanying them are

certainly not going to visit the multiplex but as with any airport, the area surrounding the airport is

surely going to develop with time with commercial and residential projects. If an airport city is

planned, then the business in multiplex is assured with the right marketing and format.

Unused space:

Empty spaces meant for future development can be hired out for exhibitions, special events like

cinema awards, motor shows, fashion shows etc.

1.3 COMPANY PROFILE

BENGALURU INTERNATIONAL AIRPORT:

Bangalore International Airport Limited (BIAL), the owner and operator of the airport

is a public limited company, registered under the Indian Companies Act. Bangalore International

19

Airport is an international airport serving the city of Bangalore. The airport is located 4 km

south of Devanahalli and is 40 km from the central business district of Bangalore 30 km from

the Bangalore City Railway Station and covers 4,000 acres. It replaced the HAL airport. For the

period of Apr–Nov 2010, it was the fourth busiest airport in terms of overall passenger traffic

and fifth busiest in terms of international passenger traffic. The airport handled about 9.3 million

passengers and had air traffic movements (ATM) of about 280 per day in the year 2009. The

airport is expected to handle 17 million passengers in the year 2015. The airport is host to 10

domestic airlines and 21 international airlines connecting the city to about 50 destinations across

India and rest of the world. The airport serves as a hub for Kingfisher Airlines and a focus city

for Jet Airways, JetLite, Indigo, Spice Jet , Go Air and Indian Airlines. The Government of

India has given BIAL the exclusive right and privilege to carry out the development, design,

financing, construction, operation, and management of the airport for a period of 30 years from

its opening date, with an option to extend the concession for another 30 years. No new or

existing airport will be permitted to operate as a domestic or international airport within 150

kilometers. The Government of India, represented by the Ministry of Civil Aviation, is

committed to equal treatment and non-discrimination of all international airports and to renew

the bilateral agreement constantly.

Ownership:

BIAL is a Public Limited Company under the Companies Act formed to build, own and operate

the Bengaluru International Airport. BIAL has been given rights by the Government of India to

develop, design, finance, operate and manage the airport for a period of 30 years from the date

of commencement of commercial flight operations. It also has an option to extend the right for

an additional 30 years .The airport project started as a public-private joint venture between

20

Germany's Siemens group, Government of Karnataka and Airports Authority of India (AAI).

As of 2011 the holding pattern is private parties hold 74% (Siemens Projects Ventures 40%,

GVK 29% and Unique Zurich 5%) stake in BIAL while the government holds the remaining

26% (Karnataka State Industrial Investment and Development Corporation 13% and Airport

Authority of India 13%). Construction of the airport began in July 2005, after a decade long

postponement. The new airport was originally planned to accommodate 3.5 million passengers

a year, but this was redesigned to handle 12 million passengers per year. The redesign resulted

in an increase in the size of the terminal; number of aircraft stands, new taxiway layouts and

supporting infrastructure. A plan is also being processed for a direct rail service from Bangalore

Cantonment Railway Station to the Basement Rail terminal at the airport. Access on the

National Highway 7 has been widened to a six lane expressway, with a 3 ft (0.91 m) boundary

wall, as construction moves ahead.

The airport was expected to be inaugurated on 30 March 2008 but due to delays in air traffic

control (ATC) services, it was finally inaugurated on 23 May 2008 just before midnight when a

Jet Airways flight from Mumbai landed here. Also, minutes later an Indian flight to Singapore

left Bengaluru International Airport, making it the first ever take-off from the airport.

Spread over an area of 4000 acres approximately it employs over 5000 employees including

concessionaire. Built on a footprint of eight acres of land, the terminal building is spread over

71,000 sq mts.Outside the terminal it has a parking lot to accommodate 2000 cars and 75

coaches. In the terminal, both on the kerb side and in the waiting area inside the terminal there

are different retail enterprises like the HMS Host, a world leader in airport dining and shopping

innovations, operate the food and beverage offering passengers and visitors a variety of cuisine

21

from all over the world. Nuance, the world’s premier airport retailer in partnership with

Shoppers Stop operates the retail and duty free outlets at the airport.

Passenger terminal

The passenger terminal is a single, fully air conditioned, four-level building capable of

accommodating international and domestic operations. The basement houses the retail storage,

rest areas and services. The arrival and departure areas are separated vertically with a modern,

simple, straight-ahead flow system. The domestic and international departure lounges, and the

majority of the retail outlets are located on level 2 (first floor). The check-in facilities and

baggage reclaim are located on level 1 (ground floor). The terminal is designed for ease of

operation and minimum maintenance. The total floor area is approximately 71,000 m2 (760,000

sq ft) and the terminal building is designed to accommodate 3,000 passengers at peak hour. The

design reflects the best industry practice and caters for 24-hour-operations, under all weather

conditions. The airport well meets the standards set by the Airports Authority of India (AAI),

the International Civil Aviation Organization (ICAO) and the International Air Transport

Association (IATA). The airport can handle 11 million people per annum with 27 aircraft

movements per hour and an estimated 550 movements. At its peak, it can handle 720 aircraft

movements in a day. Common Use Terminal Equipment (CUTE) enabled check-in counters: 54

and 20 self check in counters. The airport has 20 gates, 8 aero-bridges, including one double

arm and 19 remote bus bays. There are a total of 42 aircraft stands, all of which have a fuelling

pit. This is the first time in Indian airports that the parking stands have the fuelling pits. The

underground pits help the aircraft to fuel from the stand itself. In the first phase of development,

a car park for 2,000 cars in front of the terminal building at the ground level has been developed

for the convenience of passengers and visitors to the airport.

22

Salient features of the passenger terminal:

23

Terminal area: 71,000 m2 (760,000 sq ft)Peak passenger handling: 3,000 per hour (Phase 1)

Boarding gates:o Type: PC and 2D barcode basedo Number: 20

Aero-bridges: 8 (including 1 double arm) Bus bays: 9 (for arrival and departure) Parking: 2000 vehicles and 75 coaches (Phase 1) Check-in counters: 71 (total)

o Cute enabled check in desks: 53o Self Check-in kiosks (CUSS): 18

Security checko Domestic: 8 Airport Security Units (APSU), 1 X-Ray per APSUo International: 5 APSU’s, 1 X-Ray per APSU

Baggage screening: Five level security screening system for checked-in baggage

Immigration counters: 36 (total)o Departure: 18o Arrival: 18

Baggage carousels: 7 (total)o Domestic: 3o International: 2o Domestic and International: 2o Length:

2 x 59 metres (194 ft) 3 x 53 metres (174 ft) 2 x 97 metres (318 ft)

Runwayo Elevation: 915 metres (3,002 ft)o Orientation: 09/27o Length: 4,000 metres (13,000 ft)o Width: 45 metres (148 ft)o Width (runway plus light paved shoulders): 60 metres (200 ft)o ILS : CAT I (both ends)

Aircraft stands: 42 (code C aircraft)

Table 1.2

24

Hajj terminal

Bengaluru International Airport has an exclusive terminal for Hajj pilgrims. This terminal

covers an area of 1,500 square meters (16,000 sq ft) and can handle up to 600 passengers at a

given time. Designated prayer rooms for men and women and for Wazu (cleansing before

prayers) separate hot water facilities are available at this terminal.

Runway

The airport has one runway that can accommodate all types of aircraft. There are plans to build

a second runway when the annual traffic of the airport reaches 18 million passengers per year

which is currently estimated to reach around 2013-2014

Passenger conveniences:

Retail and duty free

Nuance, an airport retailer, in partnership with Shoppers' Stop provides a complete shopping

experience by operating the retail and duty free outlets at the airport. Operated by the Nuance

Group, one of the largest, a specialist duty-free operator in the world, this superior retail

environment aims to offer the ultimate airport shopping experience. The duty-free stores

feature over 10,000 products from some of the finest brands from all over the world. The duty-

free liquor here has one of the widest ranges across international airports in India.

Food and beverages

HMSHost corporation, an airport food-service company and subsidiary of the Italian company Auto

grill, operates the food and beverages at the airport. It offers passengers and visitors to the airport a

variety of cuisine from all over the world.

25

Lounges

Plush, sleek and stylish. These words best describe the variety of lounges the airport has to offer

at the Bengaluru International Airport. They cater to the needs of a varied group of travelers and

are new levels of luxury at Indian airports. All lounges are unique.  In their own way,

they ensure that the guests are pampered and the time spent at the airport is in sheer

comfort and luxury. Get a sneak peek at all the lounges and read about the accolades

received from guests who have cherished their stay at the airport.

VIP Lounge

Figure 1.1

Bengaluru International Airport’s new VIP Lounge is located on level 1 of the terminal. It caters

cater exclusively to departing domestic and international dignitaries, ensuring them a smooth and hassle

free airport experience from their arrival at the terminal right up to flight boarding.

Equipped with comfortable seating, Wi-Fi facility, Televisions and Flight Information Display Systems,

26

this lounge is operational 24/7 and can seat 20 guests at a time.

As Bangalore’s status grows as an attractive tourist and business destination, the number of high profile

and eminent persons passing through the airport is also increasing. We aim to offer each

of our passengers with an exceptional transit experience and feel it imperative not only to provide these

guests with a striking first impression of the city, but also lavish upon them hospitality and care

that is commensurate with the state’s heritage and culture. The lounge is expected to receive 30

such guests on an average per day.

The Reserved Lounge, Check-in Hall

Figure 1.2

Past the elevators at the check-in hall of the Bengaluru International Airport, is the reserved

lounge that caters to high-profile and important travelers. Strategically located in the terminal

building, it is accessible to both departing as well as arriving guests. This plush lounge is a

secluded corner of comfort, exclusively for the likes of MPs, chief secretaries, visiting dignitaries and

27

high-profile executives. Capable of accommodating 16 individuals at a time, it also has a private

room for a small group to hold discussions or for users to relax in a quiet environment. Tastefully

fitted with luxurious loungers and single sofas, the lounge is fully equipped with Wi-Fi facility, an in-

house pantry, and restroom with shower facility, television, and reading material. The 24/7 lounge is

serviced by ten well trained guest relations staff from BIAL.

The Kingfisher Lounge, Domestic Departure

Figure 1.3

The King of Good Times, Dr. Vijay Mallya, envisioned this lounge as one that will provide flyers a taste

of the wonderful experience they'll have on the flight, even before they board. This snazzy

lounge offers world-class facilities to cater to the premium class traveler – both business and first

class. The Kingfisher corporate colour, red, is highlighted in the paneling, seating, flooring and

the lighting to create a relaxing and soothing feel. The ambience and aesthetics compliment Indian

culture in modern environment. Designed to cater to 70 business class and 20 first class travelers at any

28

time, the lounge pampers you with an array of exclusive facilities that include a library, communication

and shower facilities. It also offers dedicated buffet and eating areas. Other

general facilities available are high-speed broadband Internet access, and food and beverage.

A business center in the lounge, complete with Apple desktops, scanners and printers ensures that you

have the comfort of your office at the airport! A new dimension to the lounge services will be the bar

service. Presently serving tea, coffee and juices, the bar will soon obtain the necessary license, to

serve alcoholic beverages. The seating at the lounge has been given ample thought, keeping in

mind the varied requirements of the guests. Opt for restaurant-style seating if you want a sit-down meal, or

sink into a sofa for greater comfort. Bar stools create an informal and chic setting while

sofa seating for groups or families, and individual bucket sofas for guests who prefer privacy are

also available.

The Oberoi Lounge, International Departures

Figure 1.4

This plush and inviting executive lounge at the International Departures, operated by the Oberoi Group,

29

blends exclusivity with a feel of India. Its luxurious environs create a contemporary, comfortable

ambience surrounded by South Indian heritage.

The lounge caters to first and business class passengers of international airlines which

have partnership tie-ups with The Oberoi Group. Here, you have dedicated areas to cater to the

individual needs of both sets of passengers.  An exclusive shower room, a dedicated bar and relaxed

seating are some of its features. The lounge for first class passengers offers classy reclining chairs with

levers that you can adjust to suit your comfort. The lounge also offers anytime Wi-Fi access for

the business traveler. Its interiors display Indian architecture, with picture frames of popular

temples and palaces located around Bangalore. Each of these carefully-selected pictures draws

the guest’s attention to leave a lasting impression. It is here that the business traveler, the

quintessential elite family on vacation or the industrial entrepreneur can savor the best in hospitality,

quietly and unobtrusively.

Air India Lounge, Domestic Departure

Figure 1.5

Launched in May 2009, the plush new Air India lounge at the Bengaluru International Airport Domestic

Departure can accommodate 72 guests. This is one place where you, as a passenger of

30

the airline, can indulge in luxury, listen to the soothing sounds of a rippling water fall while

sipping a chilled beverage, and wait for your flight.

VVIP Terminal, Airside

Figure 1.6

At the airport extra care to ensure that VVIP guests receive easy access to their flights. The VVIP

Terminal is strategically located next to the Passenger Terminal Building with a landside and

airside interface to facilitate the movement of VVIPs from and to the airport. Occupants of this

terminal are specified by the Government of India and accordingly given permission to utilize

the terminal. A majority of guests at this terminal are also exempt from security frisking and

have direct access to the airside and their aircrafts.

The building houses two chic contemporary lounges, a conference room and a State

31

Protocol office. It is well equipped with a screening facility for security officials, an in-house

pantry, a restroom with shower facilities, flat screen television and reading material. The building

has a lush lawn in the front and a car parking space for the VVIP’s movement. There is also a

provision for flag hoisting and parade areas to welcome important government dignitaries. The

lounges within the building are built with the concept of creating formal meeting rooms where

the VVIP can meet the media or people, talk, work and relax as on routine tours. The lounge

interiors are vibrant and colorful, in line with a contemporary feel. Seating space for large groups

is designed using various lounge seats and task seats.

On 21 January 2011, a new VIP departure and arrival lounge was inaugurated. One

lounge which is present at level one of the terminal will serve departing domestic and

international dignitaries and the other on the ground floor will serve arriving dignitaries.

Hospital

Columbia Asia hospitals operates a 24/7 medical care unit and a pharmacy inside the passenger

terminal to provide medical care for travelers and other occupants of the airport. It has the latest

in medical equipment, technology and expertise to handle outdoor medical care and stabilize

emergencies. In addition, along with its partners, Columbia Asia provides total medical

assistance in coordinating any mass casualty event or a disaster.

32

Car parking

Central Parking Services (CPS), a parking management company in India, provides state-of-the-

art car parking management and premium valet services at the airport. It also manages the

curbside traffic at the airport.

Aviation services

Aviation fuel facility

Sky tanking and Indian Oil operate the Fuel Farm and Hydrant System of the airport. A

36 kilometers (22 mi) fuel pipeline was commissioned in October 2009 by Indian Oil from

Devanagonthi to the airport. The need of 80 tankers to ferry Aviation Turbine Fuel to the airport

can be done away with the installation of these pipelines.

Into - Plane fueling service

Bharat Petroleum Corporation Limited (BPCL), ST Airport Services Pvt. Ltd. (STARS) and Indian

Oil Sky tanking provide fuelling services at the airport.

Ground handling

Globe Ground India and Air India/ Singapore Air Terminal Services (SATS) provide ground handling

services and procure the ground handling equipment required for operations.

Flight catering

Flight catering services are provided by LSG Sky Chefs and Taj SATS.

Aircraft maintenance

Bengaluru International Airport Limited (BIAL) has signed a pact with Air Works, a DGCA

approved aviation service provider to carry out third party line maintenance (TPLM) services.

33

TPLM is a service by an external agency (other than an airline or airport) for aircraft

maintenance. TPLM services could be supported by the MRO facility at Hosur. The facility is

certified for Airbus A320, Boeing 737, ATR 42 and ATR 72 family of aircraft.

Cargo village

The cargo village was inaugurated on 9 December 2009. It houses 120 freight forwarders and

80 custom house agents and can accommodate parking of nearly 80 trucks. There are two cargo

terminals in the village. One of the terminals is operated by Menzies Aviation Bobba Pvt Ltd.

This terminal has an initial capacity to handle 150,000 metric tons of cargo. The other terminal

is operated by Air India SATS Joint Venture consortium. This terminal has a two floor

warehouse with a capacity of 200,000 metric tons.

Expansion plan

On 19 January 2010, BIAL embarked on expansion plan and fast tracked construction of a new

state of the art terminal building.

The first phase of construction of the new terminal is expected to cater to passenger traffic of

about 15 million per year. There are also plans to expand the new terminal to cater to 36 million

passengers per year.

There are also plans to expand the existing terminal to cater to 15 million passengers per

year.

The expansion would also increase the number of check-in counters and the seating

capacity at the waiting areas. Once done, Terminal 1 would sport a brand new look and will be

capable of handling the A380 aircraft.

34

At present there are a number of delays in arrival and departure of flights due to fog. To

reduce such delays, the runway has to be upgraded to Category III B. This up gradation would be

done when a second runway will be constructed (along with Terminal 2).

Connectivity:

Proposed high speed rail link

As the airport is 40 km outside the city, a new high-speed rail link has been approved to connect

the city to the airport. The high speed rail link would be integrated with the Bangalore Metro

and would cover a distance of 33 kilometers with four stations: Cubbon Road (Terminal

Station), Hebbal, Yehalanka, and Bengaluru International Airport (Terminal Station). The

project is expected to cost 6,900 crore (US$1.5 billion). Of the 6,900 crore (US$1.5 billion),

the State Government would contribute 532 crore (US$115.44 million) (mainly for land

acquisition) while the Central Government would contribute 1,040 crore (US$225.68 million).

The companies short-listed for this project are Pioneer Infratech Private Limited and Siemens

Project Ventures, Lanco Infratech Private Limited and OHL Concessions S.L., L&T Transco

Limited, Reliance Infrastructure and CSR Nanjing Rolling Stock Company Limited, and ITD-

ITD Cem-Soma Enterprises Joint Ventures. The fare would be 200 (US$4.34) from M.G.

Road, 150 (US$3.26) from Hebbal and 100 (US$2.17) from Yelahanka.

Air link

Charter helicopter services are available from Electronics city, Whitefield, HAL Airport and Mysore

to BIA. These services are being provided by Birdie and Deccan Air.

35

Awards and honors

Even though there was an economic slowdown, BIA managed to keep its traffic base and

route network stable. It was hence awarded The Routes Asia Airport Marketing Award

chosen among five other airports in the Indian sub-continent.

At the Emerging Markets Airports Awards 2010, held in Dubai, BIA was awarded The

Best Emerging Airport in Indian sub-continent.

Received a platinum certification from IATA in January 2010 for becoming The first

airport in India to be 100% Bar Coded Boarding Passes (BCBP) compliant.

At the CNBC AWAAZ Travel Awards 2010 held at Delhi, BIA was awarded The Best

Managed Airport in India.

36

CHAPTER – 2

ANALYSIS AND INTERPRETATIONS

37

DATA ANALYSIS AND INTERPRETATION

1) Are you a passenger, accompanying person or casual visitor to the airport?

a) Passenger b) accompanying the passenger c) casual visitor

Table 2.1:

Are you a passenger, accompanying person or casual visitor to the airport?

TYPE NO. OF RESPONDENTS

Passengers 28

Accompanying the passenger 59

Casual visitor 13

INTERPRETATION:

Among 100 customers 28 are passengers, 59 are persons accompanying the passengers and 13

are casual visitors to the airport.So out of 100 persons 72 are potential customers of the

airports landside retail.

38

2) Why did you accompany the passenger?

a) This is the passengers first trip b) This has being the practice c) To see the airport

d) Outing for the family

Table 2.2:

Why did you accompany the passenger?

REASON NO. OF RESPONDENTS

This is the passengers first trip 05

This has being the practice 45

To see the airport 13

Outing for the family 37

INTERPRETATION:

Among 100 persons 50 persons came to the airport for the sake of visiting the airport alone.

39

3) How was your experience at the airport?

a) Excellent b) Good c) Bad

Table 2.3:

How was your experience at the airport?

LEVEL NO. OF RESPONDENTS

Excellent 48

Good 44

Bad 08

INTERPRETIATON:

With 92 % of the respondents giving thumbs up, the airport is in the right track as far the

customer experience goes.

40

4) What pleased you the most at the airport?

a) Huge size of the airport b) Food & Beverages

c) Comfort facilities d) All e) None

Table 2.4:

What pleased you the most at the airport?

FACILITY NO. OF RESPONDENTS

Huge size of the airport 0

Food & Beverages 0

Comfort facilities 0

All 100

None 0

INTERPRETATIONS:

With 100% of the respondents giving full marks for the infrastructure and facilities it’s a win-

win situation for the airport in respect to the expansion plans.

41

5) How do you rate the pricing of the food and beverages items available at the airport?

a) Costly b) Affordable c) Cheap

Table 2.5:

How do you rate the pricing of the food and beverages items available at the airport?

RATING NO. OF RESPONDENTS

Costly 24

Affordable 76

Cheap 0

INTERPRETATION:

With 76 % of the respondents saying that the pricing is affordable there is no worry regarding

the premium pricing for the products.

42

6) Are you satisfied with the facilities at the airport?

a) Satisfactory b) Not satisfactory

Table 2.6:

Are you satisfied with the facilities at the airport?

RATING NO. OF RESPONDENTS

Satisfactory 76

Not satisfactory 24

INTERPRETATION:

With 76% of the respondents expressing their satisfaction, the airport is in the right track as far

as customer satisfaction is concerned.

43

7) What facility according to you can be improved at the airport?

a) Drinking water b) Toilets c) Seating arrangements d) Guides

Table 2.7:

What facility according to you can be improved at the airport?

FACILITY NO. OF RESPONDENTS

Drinking water 56

Toilets 84

Seating arrangements 74

Guides 06

INTERPRETATION:

A majority of the respondents asking for the seating, drinking water and toilet facilities to be

improved the airport operator has to take a positive approach regarding this unmindful of the

expenditure involved.

44

8) How will you like to spend time with your family and friends at the airport?

a)Shopping b)Sight seeing c)Relax in a park like setup

d)See-off and return immediately

Table 2.8:

How will you like to spend time with your family and friends at the airport?

ACTIVITY NO. OF RESPONDENTS

Shopping 33

Sight seeing 12

Relax in a park like setup 40

See-off and return immediately 05

INTERPRETATION:

Only 05 persons would like to return back immediately which shows given the right facilities

people are ready to spend quality time with their family at the airport.

9) What new concept would you like to see at the airport in the future?

45

a)Shopping mall b)Multiplex c)Theme park

d)Exhibition e)All of these

Table 2.9:

What new concept would you like to see at the airport in the future?

TYPE NO. OF RESPONDENTS

Shopping mall 22

Multiplex 24

Theme park 08

Exhibition 02

All of these 44

INTERPRETATION:

With most respondents wishing to see a shoppingmall, multiplex at the airport there is a bright

chance for retail in a big way at the airport.

46

10) Would you avail of these value additions even if the price is more than in other places?

a) Yes b) No c) Maybe

Table 2.10:

Would you avail of these value additions even if the price is more than in other places?

ANSWER NO. OF RESPONDENTS

Yes 74

No 04

Maybe 22

INTERPRETATION:

With a majority of the people willing to spend that extra for good service revenue from the new

projects will not be a problem.

47

11. Would you visit the airport even if no one among you is travelling that is, visit the

airport for its added attraction?

a) Yes b) No c) Maybe

Table 2.11:

Would you visit the airport even if no one among you is travelling that is, visit the airport

for its added attraction?

ANSWER NO. OF RESPONDENTS

Yes 64

No 16

Maybe 20

INTERPRETATION:

Given the right atmosphere and products respondents are ready to consider airport as alternate

destination for weekend outing etc.

48

CHAPTER – 3

FINDINGS

49

FINDINGS

On the basis of the theoretical information and data gathered by administering schedule to

customer which is analyzed, the following observations are made:

Bangalore International Airport is Bangalore’s pride and a landmark the Bangaloreans

are proud of.

Being a first point of contact to the arriving passengers it has being successful in

generating a positive image of this city of being warm, welcoming and tech savvy.

Being an airport, the revenue from the aeronautical charges depends upon the aircraft

movements at the airport.

The pattern of air travel is directly dependent on the economy of the country and the

revenue generated in an airport is not always guaranteed.

The idea of an aerotropolis is acceptable to the non flying customers.

The customers are comfortable with the idea of airport becoming their shopping and

leisure destination.

They are ready to pay more than the prevailing rates for the goods accepting the fact that

the airport premises comes at premium.

The facilities can be used both by the traveler and non flying customers.

50

CHAPTER – 4

CONCLUSION

51

CONCLUSION

After taking account the customer’s feedback and airport performance and looking at

the recent trends in airport worldwide airports can not only survive but also earn a neat profit by

evolving and innovating itself. We can draw the following conclusion:

Those who travel by air will keep doing so and most of them are accompanied to the

airport by their relatives or friends.

With boarding gates closing half an hour before flight and check-in starting two hours

before flight people arrive at the airport at least three hours before flight.

So people have at least one to two hour free time at the airport.

People prefer to spend quality time with their relatives, friends by shopping, eating or

talking in a relaxed, informal setup with F&B at arm’s length.

With reasonable pricing and good packaging people will prefer airport as a weekend spot

with airplanes flying around as bonus.

People don’t mind paying a premium for the facilities.

People would not only spend on F&B,but also on luxury items,sightseeing,exhibitions,

theme park etc.

People like the concept of an airport as an alternate destination for fun and frolic.

52

CHAPTER -5

SUGGESTIONS

53

SUGGESTIONS

People are ready to accept airport as a good fun and frolic destination. So the landside

should be developed keeping that in focus. People are ready to pay a premium, so the rates need

not be compromised.Morever they are already paying a premium at multiplexes, railway station,

shopping malls, boutique etc for the products. With Nandi Hills near the airport and residential

projects by big ticket developers planned, an aerotroplis is an ideal concept which is sure to

succeed. With Govt planning SEZ’s and developing Nandi Hills as a major tourist attraction the

aerotropolis will have a first mover advantage over others. Some of the suggestions are:

A large centrally air-conditioned convention center with a flexible arrangement to

accommodate a group of 5 persons to 5000 persons fitted with top end AV system, Wi-Fi

connectivity and secretarial facilities.

A spa with quick fix solutions for relaxation and rejuvenation nearby or attached to the

convention centre.

These can be situated close to the terminal with connectivity by electric or battery

operated vehicles like golf cart, car or vans.

A two tier shopping mall outsourced to a retail giant like Mark&Spencer, Wal-Mart or

Big bazaar.

A water theme park or bird safari on the lines of Singapore Sentosa islands or Dubai

managed by experts.

A cinema multiplex with flexible arrangement for hosting events like film festival, art

festivals or other cultural events.

An open stadia to conduct mini sports event like motocross, exhibitions etc.

54

A miniature golf course on the line of Hong Kong airport managed by experts to cater to

the business class passengers.

Small units of dwelling like for bachelors and small families for limited period which

can be outsourced to hospitality group. This is apart from the 5 star hotel already present.

All these above mentioned development will also present a good ad revenue around

them.

Airport should not collect rent for these properties, but should participate in a profit

sharing pattern. This will give the concessionaires operating flexibility and freedom to conduct

business without bothering about the monthly rent.

Airport should not operate any of the above mentioned projects but leave it to the

experts.

All properties to be given out on short lease only, so that both parties will have the

flexibility of changing the contract if not making profit.

A clause of termination on prior and mutual notice to be included so that both parties can

operate flexibly.

55

REFERENCES

56

REFERENCES

1. Briefing of ICAO Council on airport business and economics, Angela Gittens, ACI

world.

2. Director General, Declan Collier, CEO Dublin Airport Authority, pp.81 – 86,125 - 127.

3. P.S.Senguttavan, Principles of Airport Economics, Excel books, pp.6 – 9, 14 – 18, 131-

- 138.

4. The Economic and Social Impact of Airports, September 2007, Airports Operators

Association, York Aviation LLP.

5. 1st Annual Airport Revenue Conference, Eliot Lees, VicePresident, SH&E International

Air and Transport Consultancy.

6. www.bangaluruairport.com

7. www.wikipedia.com

57

ANNEXURE

58

QUESTIONNAIRE

NAME :

AGE :

OCCUPATON :

CONTACT NO. :

1) Are you a passenger, accompanying person or casual visitor to the airport?

a) Passenger b) accompanying the passenger c) casual visitor

2) Why did you accompany the passenger?

a) This is the passengers first trip b) This has being the practice c) To see the airport

d) Outing for the family

3) How was your experience at the airport?

a) Excellent b) Good c) Bad

4) What pleased you the most at the airport?

a) Huge size of the airport b) Food & Beverages

c) Comfort facilities d) All e) None

5) How do you rate the pricing of the food and beverages items available at the airport?

a) Costly b) Affordable c) Cheap

6) Are you satisfied with the facilities at the airport?

a) Satisfactory b) Not satisfactory

59

7) What facility according to you can be improved at the airport?

a) Drinking water b) Toilets c) Seating arrangements d) Guides

8) How will you like to spend time with your family and friends at the airport?

a)Shopping b)Sight seeing c)Relax in a park like setup

d)See-off and return immediately

9) What new concept would you like to see at the airport in the future?

a)Shopping mall b)Multiplex c)Theme park

d)Exhibition e)All of these

10) Would you avail of these value additions even if the price is more than in other places?

a) Yes b) No c) Maybe

11)Would you visit the airport even if no one among you is travelling that is, visit the

airport for its added attraction?

a) Yes b) No c) Maybe

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