<p>Is Bengaluru ready for a second commercial airport? For years, the old HAL Airport has remained shut for civilian operations, as dictated by an agreement with the Bangalore International Airport Limited (BIAL). This deal is still in force, but a new proposal for an entirely new airport has sparked a debate.</p>.<p>Nothing big has changed in the city’s aviation map, not in the immediate past. Despite the pandemic-triggered hiccup, Kempegowda International Airport (KIA)’s second terminal work is well on course, and its second runway is now operational. Why then did the Bangalore Chambers of Industry and Commerce (BCIC) propose a new greenfield airport, and why now?</p>.<p class="CrossHead"><strong>KIA’s capacity</strong></p>.<p>Indeed, BIAL has estimated that on completion of Phase-2 of its Terminal-2 project, KIA’s capacity will soar to 65 Million Passengers Per Annum (MPPA). But BCIC insists that what matters is the airport’s peak hour capacity, which it contends, will saturate much earlier than 2030.</p>.<p>The Chamber’s rationale, articulated by its immediate past president Devesh Agarwal, is this: “For any airport, it is peak-hour capacity that matters. This continues to be limited by airspace, runways and airside capacity followed by terminal and landside capacity.”</p>.<p>Tracking the city’s aviation trend since 2002, a recently released BCIC report had shown that the city’s air traffic grew at a compounded annual rate of 8.3% over the last 18 years. “Passenger volumes quadrupled during the period of Financial Years (FY02 to FY10) and then trebled from FY10 to FY20. Even adjusting for Covid impact, Bengaluru’s passenger volumes will double again by the next decade.”</p>.<p class="CrossHead"><strong>Decongesting city</strong></p>.<p>Besides capacity issues, another key rationale behind the new airport proposal is the much-talked-about need to decongest Bengaluru. This implies development of smaller clusters around the city, mandating good connectivity by air to the outside world.</p>.<p>For Bengaluru, the airport’s location to the North has led to areas in close proximity recording growth in terms of jobs, output and real estate. However, as the report notes, the Southern areas especially the Mysore-Channapatna-Hassan belt has lagged behind. “This imbalance must be considered and a second airport can help correct this.”</p>.<p class="CrossHead"><strong>Urgency</strong></p>.<p>But why plan for an airport now? The Chamber contends that land acquisition is getting increasingly complex and time-consuming. The project is also bound to hit legal hurdles. Considering these factors, the planning horizon for a second airport should start years in advance. “With only eight years before the current airport saturates, stakeholders must act swiftly towards realising a second commercial airport.”</p>.<p>Planning early, says the report, will ensure that Bengaluru does not go the Mumbai or Kolkata way. The Navi Mumbai Airport is now underway, leveraging the fact that the Northern part of the city is experiencing high growth rates.</p>.<p>The failure to plan for a second airport early had impacted Mumbai adversely. Kolkata too is faced with extreme challenges linked to land identification and acquisition for a second airport. “This should be seen as a forewarning to plan ahead.”</p>.<p class="CrossHead"><strong>Economic multiplier</strong></p>.<p>From an industry perspective, airports are considered economic multipliers. “When layered with hotel capacity growth and other numbers like housing, safety and spending, there is a clear and visible impact. Finally, real estate prices and rental yields are also directly impacted due to the proximity of an airport.”</p>.<p>Bengaluru contributing nearly 86% of Karnataka’s economic output is only side of the industry story. The city is no longer a single entity, and this is where the proposal draws attention to the geographical spread of the growth clusters, and by implication the need for a second airport.</p>.<p>Connectivity, the Chamber insists, is critical to sustain these clusters in the future. Predominantly concentrated in the Southern part of the city is the IT cluster. The Aerospace cluster is located towards the Northern part, close to KIA while the Eastern part has a Bio-technology cluster.</p>.<p>On the city’s outskirts, in the industrial estates, are the manufacturing clusters. The Micro, Small and Medium Enterprises (MSME) are spread across the city. An estimated one lakh MSMEs are registered in Bengaluru.</p>
<p>Is Bengaluru ready for a second commercial airport? For years, the old HAL Airport has remained shut for civilian operations, as dictated by an agreement with the Bangalore International Airport Limited (BIAL). This deal is still in force, but a new proposal for an entirely new airport has sparked a debate.</p>.<p>Nothing big has changed in the city’s aviation map, not in the immediate past. Despite the pandemic-triggered hiccup, Kempegowda International Airport (KIA)’s second terminal work is well on course, and its second runway is now operational. Why then did the Bangalore Chambers of Industry and Commerce (BCIC) propose a new greenfield airport, and why now?</p>.<p class="CrossHead"><strong>KIA’s capacity</strong></p>.<p>Indeed, BIAL has estimated that on completion of Phase-2 of its Terminal-2 project, KIA’s capacity will soar to 65 Million Passengers Per Annum (MPPA). But BCIC insists that what matters is the airport’s peak hour capacity, which it contends, will saturate much earlier than 2030.</p>.<p>The Chamber’s rationale, articulated by its immediate past president Devesh Agarwal, is this: “For any airport, it is peak-hour capacity that matters. This continues to be limited by airspace, runways and airside capacity followed by terminal and landside capacity.”</p>.<p>Tracking the city’s aviation trend since 2002, a recently released BCIC report had shown that the city’s air traffic grew at a compounded annual rate of 8.3% over the last 18 years. “Passenger volumes quadrupled during the period of Financial Years (FY02 to FY10) and then trebled from FY10 to FY20. Even adjusting for Covid impact, Bengaluru’s passenger volumes will double again by the next decade.”</p>.<p class="CrossHead"><strong>Decongesting city</strong></p>.<p>Besides capacity issues, another key rationale behind the new airport proposal is the much-talked-about need to decongest Bengaluru. This implies development of smaller clusters around the city, mandating good connectivity by air to the outside world.</p>.<p>For Bengaluru, the airport’s location to the North has led to areas in close proximity recording growth in terms of jobs, output and real estate. However, as the report notes, the Southern areas especially the Mysore-Channapatna-Hassan belt has lagged behind. “This imbalance must be considered and a second airport can help correct this.”</p>.<p class="CrossHead"><strong>Urgency</strong></p>.<p>But why plan for an airport now? The Chamber contends that land acquisition is getting increasingly complex and time-consuming. The project is also bound to hit legal hurdles. Considering these factors, the planning horizon for a second airport should start years in advance. “With only eight years before the current airport saturates, stakeholders must act swiftly towards realising a second commercial airport.”</p>.<p>Planning early, says the report, will ensure that Bengaluru does not go the Mumbai or Kolkata way. The Navi Mumbai Airport is now underway, leveraging the fact that the Northern part of the city is experiencing high growth rates.</p>.<p>The failure to plan for a second airport early had impacted Mumbai adversely. Kolkata too is faced with extreme challenges linked to land identification and acquisition for a second airport. “This should be seen as a forewarning to plan ahead.”</p>.<p class="CrossHead"><strong>Economic multiplier</strong></p>.<p>From an industry perspective, airports are considered economic multipliers. “When layered with hotel capacity growth and other numbers like housing, safety and spending, there is a clear and visible impact. Finally, real estate prices and rental yields are also directly impacted due to the proximity of an airport.”</p>.<p>Bengaluru contributing nearly 86% of Karnataka’s economic output is only side of the industry story. The city is no longer a single entity, and this is where the proposal draws attention to the geographical spread of the growth clusters, and by implication the need for a second airport.</p>.<p>Connectivity, the Chamber insists, is critical to sustain these clusters in the future. Predominantly concentrated in the Southern part of the city is the IT cluster. The Aerospace cluster is located towards the Northern part, close to KIA while the Eastern part has a Bio-technology cluster.</p>.<p>On the city’s outskirts, in the industrial estates, are the manufacturing clusters. The Micro, Small and Medium Enterprises (MSME) are spread across the city. An estimated one lakh MSMEs are registered in Bengaluru.</p>
