Bangalore Intl Airport, IOC tie up for fuel station

Bangalore International Airport Ltd (BIAL) has decided to partner with Indian Oil Corporation (IOC)-led consortium for the aviation fuel facility to be set up at the new airport coming up at Devanahalli.

BIAL has signed a 20-year contract with IOC and its consortium partners Skytanking Holding and IndianOil Tanking. The consortium plans to invest Rs 90 crore in the facility.

The selection was done through an open tender. The consortium will look after the design, construction, financing and operation of the proposed facility.

BIAL may be the first airport in the country to operate under the open access model. The model allows every qualified fuel supplier to use the facility against a fixed throughput fee and also allows airlines to get the best fuel prices available in the market.

N G Kannan, director (marketing), IOC, said, "We are confident that we can provide the best service to BIAL to set up a world class facility. We have 95 aviation fuel stations under our fold and enjoys 65 per cent of the market share. The open access model will help reduce the operating costs of aviation fuel handling and refuelling."

"In order to woo airlines, airports have been forced to offer competitive fuel prices. The implementation of a truly open access model is, therefore, of strategic importance to BIAL," said Albert Brunner, chief executive officer, BIAL.

BIAL is a special purpose vehicle set up to design, build, own and operate the new airport. The Karnataka State Investment and Industrial Development Corporation holds 13 per cent stake in BIAL, while Airports Authority of India has 13 per cent.

Siemens Projects Ventures (40 per cent), Larsen and Toubro (17 per cent) and Unique Zurich Airport (17 per cent) are other promoters of the venture.