Anil Ambani loses air cargo handling bid at Bangalore

Anil Ambani-controlled Reliance Energy has been third time unlucky in bidding for a slice of the airport privatisation business.

After losing out to rivals in the Mumbai and Delhi airport modernisation race, the company has now lost in its bid to set up cargo handling facilities at the Bangalore International Airport.

Reliance Energy had teamed up with Texas-based cargo handling major Worldwide Flight Services to bid for cargo operations and ground handling services at the airport being set up by Bangalore International Airport Ltd (BIAL), a special purpose vehicle.

The consortium led by national flag carrier Air-India and Singapore Airport Terminal Services (SATS) has been ranked first by BIAL for the cargo handling facilities. BIAL will select two independent partners for cargo to operate at the airport. The other two shortlisted consortia include Bobba Group-Menzies Aviation and Swissport International-Cargo Service Center.

"The second ranked consortium will be requested to commercially match the consortium ranked first. In case the party ranked second is able to do so, BIAL will award contracts to both. In case the agreements cannot be concluded with the first two parties within a reasonable time, BIAL will start negotiations with the party ranked third," BIAL sources said.

The agreement with the selected partners in cargo should be concluded in early May.

When contacted, Air-India Chairman and Managing Director Vasudevan Thulasidas declined to give details. But he said, "We have been ranked first for cargo handling operations."

Air-India is the current market leader in cargo handling and ground handling services with over 50 per cent market share.

Private airline Jet Airways and Airports Authority of India (AAI) were also in the race.

But the Reliance Energy-World Flight Services consortium is still in the race for ground handling operations. Others in the race for ground handling include Indian Airlines, Jet Air-Dnata and the Menzies Aviation-Bobba group.

BIAL is a special purpose vehicle that will design, build, own and operate India's first greenfield private sector-owned and operated airport in Devanahalli, near Bangalore.

BIAL was promoted by Siemens Projects Ventures, Larsen and Toubro, Unique Zurich Airport, Karnataka State Investment and Industrial Development Corporation and AAI.