Bengaluru needs a second, or a third airport
News reports on August 5 said that the Karnataka government had identified seven locations for a second airport in Bengaluru. The government’s aspirations are laudable and must be welcomed. It’s a no-brainer, as the need is as obvious as daylight.
Just like airlines compete with each other, we must also have airports competing with one another, as seen in London, New York, and Paris. Bengaluru is a mega cosmopolitan city attracting highly qualified professionals, entrepreneurs, and diverse industries. More airports mean more healthy competition, which translates into better quality services, lower prices, and growth in air travel. Ultimately, the people and the city will benefit from it in countless ways.
There is a need for more airports—not just two, maybe three, or even four as years roll by to serve a radius of 50 km in all directions of an ever-expanding Bengaluru. London, for example, has six international airports.
Closing HAL airport in 2008 was not a prudent decision. It was in service for over 60 years, and it was congested and crumbling, and the service was very poor. The civil enclave of the defence airport could have been privatised and should have competed with the Kempegowda International Airport (KIA). Back then, the city badly needed a modern airport. A glittering new airport that every Bengalurean can be proud of was built. Yet, it is still a good idea to reopen the HAL airport and the new greenfield airport now being considered. The second airport in Bengaluru aims to be completed before Tamil Nadu’s proposed airport at Hosur.
The Bangalore International Airport Limited (BIAL), which operates the KIA, has a contractual concession restricting any other airport from operating within a 150-km radius of the KIA for 30 years (till 2033). Given this, it’s time to start planning.
While public-sector monopoly airports and enterprises are inefficient and indifferent, private-sector monopolies are efficient but extortionist and morph into rapacious monsters. The regulator regulates monopolies instead of monitoring and regulating competition—akin to a regulatory authority regulating the Indian Railways.
Currently, a person staying in Electronic City in southeast Bengaluru, or the Jigani industrial area or Hosur or Bidadi who has to catch a flight needs to travel three hours or more to reach KIA, which is in north Bengaluru. Apart from the time it takes to reach the airport, the air travel time to various domestic destinations is longer and adds to the total cost of air travel, thus making it unaffordable to common people who wish to switch to air travel.
A city should grow in all directions, resulting in the growth of economic activity equitably in all directions, instead of lopsided growth in one direction. Multiple airports will also be a catchment area to encourage satellite towns to take to flying when there’s easy accessibility to airports and create balanced growth by attracting investments across towns attached to greater Bengaluru.
No one wants to spend time in airports, even posh airports, unless forced to due to delays. Everyone wants to go home or reach their workplace after they land or arrive at airports just in time to fly out.
We also need low-cost airports so that people can get on and off without having to pay a premium for food or shopping for basic necessities. Imagine paying Rs 600 for a masala dosa or idli vada and coffee, which is costlier than five-star hotels. We must cater to low-cost airlines with low-cost terminals which are clean, and efficient, and operate from cost-efficient, low-cost airports so that more people can afford air travel.
Need for smaller airports
Competition is key. Monopoly mega airports with conditions of no airports within a 150 km radius have two other fallouts.
For example, when Air Deccan was in operation, at the request of the then chief minister, we wanted to start a flight to Bidar in northernmost Karnataka, which took 15 hours by road from Bengaluru. Those who could afford it then (and even now) fly from Bengaluru to Hyderabad and, from there, reach Bidar by road. Air Deccan was offered a civilian enclave by the Air Force in Bidar to operate flights. Still, the company operating the Hyderabad airport had an agreement that stopped any airline flying into a new airport within 150 km of Hyderabad. Bidar still languishes without air connectivity.
Second, mammoth private airports welcome large airliners, especially wide bodies, which carry 200-450 passengers because they generate huge revenues from landing and handling charges, as well as ancillary revenues at airport lounges and shopping. They don’t give preference to small regional aircraft that transport 20-75 passengers, especially rural folk who can’t splurge. When, under governmental pressure, these airports allow a few small flights, they are charged sky-high rates.
People from far-off towns and villages travel to the state capital, usually for work with the government or business purposes. Poor connectivity hinders this, and even economic growth is stalled. The lack of connectivity affects the tourism sector too, which is a large employer in the unorganised sector.
Given this, it is vital for the state’s economic health to have multiple airports where low-cost airports/terminals will enable regional connectivity at lower fares.
Delhi is now a good example of how different private entities handle airports, which will pave the way for robust competition. Noida is being developed by Flughafen Zürich AG (Zurich Airport), and GMR handles the Delhi Palam area. This will further benefit the growth of Delhi-NCR.
More than blaming politicians, we must blame entrenched businesses. They are the ones who cause more hindrance and try to prevent new businesses from competing with them once they get their license. These high, and often unreasonable, barriers remind one of the licence raj days when only a select few controlled important sectors of the economy.
We need a vibrant private sector, but not monopolies or cartels. Let multiple airports bloom so that more jobs are created, there is prosperity, and billions can take to the skies.
(The writer is a soldier, farmer, and entrepreneur)