5/2/2008 1/33

Impact of Airport Privatisation on Infrastructure and Charges

Contemporary issues in Air Transport, Air Law & Regulation

Best results are obtained when priorities of both public

and private Partners are mutually addressed.

Private Sector

Public bodies

Key traits of successful PPPs:

• Enabling regulatory environment.

• Performance risks borne by private players.

• Commercial risks shared by parties best

positioned to bear them.

• Promotes competition among best players.

• Policies that ease access to low-cost, long-

term capital.

Priorities:

• Bankable projects with returns

commensurate with risks

involved.

• Fair and transparent

processes.

• Policies neutral to political

changes

Priorities:

• Best-in-class and timely

infrastructure creation.

• Good end-user services.

• Acceptable user charges.

• High public acceptance.

• Focus on public good.

5/2/2008 3/33

Public Private Partnership - story so far

Airport Passenger

Traffic Rank

Annual

Passenger

(millions)

%age of Indian

air passenger

traffic

Year

Cochin 7th 2.6 2.7% 2002

Delhi 2nd 20.4 22.2% 2006

Mumbai 1st 22.3 23.1% 2006

Hyderabad 6th 5.8 6.0% 2008

Bangalore 4th 8.1 8.4% 2008

Sub Total 59.2 62.4%

Traffic based on 2006-07

5/2/2008 4/33

Air Traffic Projection - 1996-97

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

1996

-97 (A

ctua

l)

1997

-199

8

1998

-199

9

1999

-200

0

2000

-200

1

2001

-200

2

2002

-200

3

2003

-200

4

2004

-200

5

2005

-200

6

2006

-200

7

2007

-200

8

2008

-200

9

2009

-201

0

2010

-201

1

2011

-201

2

2012

-201

3

2013

-201

4

2014

-201

5

2015

-201

6

2016

-201

7

Was a

chie

ved in

20

05

-

06

–73

mill

ion

5/2/2008 5/33

Passenger Traffic Growth

4044

49

59

96

73

0

20

40

60

80

100

120

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Mil

lio

n P

ax p

.a.

0%

5%

10%

15%

20%

25%

30%

35%

Perc

en

tag

e G

row

th

5/2/2008 6/33

Airport Growth Story – 2006-07

Total Passenger Traffic (FY2006-07 in Millions) Passenger Traffic Growth Rates

Growth FY2006-07 over FY2005-06

22.3

20.4

9.08.1

6.05.8

2.6 2.5 2.21.8

0.0

5.0

10.0

15.0

20.0

25.0

MU

MB

AI

DE

LH

I

CH

EN

NA

I

BA

NG

ALO

RE

KO

LK

AT

A

HY

DE

RA

BA

D

CO

CH

IN

AH

ME

DA

BA

D

GO

A

TR

IVA

ND

RU

M

Market

Share23.1% 21.2% 9.3% 8.4% 6.2% 6.0% 2.7% 2.6% 2.3% 1.8%

44.1% 43.7%

35.8% 35.4% 34.8%33.7%

32.3% 32.3% 31.7%

25.9%

20.9%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

HY

DE

RA

BA

D

BA

NG

ALO

RE

KO

LK

AT

A

CO

CH

IN

TR

IVA

ND

RU

M

Avera

ge

GO

A

CH

EN

NA

I

AH

ME

DA

BA

D

DE

LH

I

MU

MB

AI

Port Blair Airport has increased by 146.6% in the FY 2006-07 as compared to FY 2005-06.

5/2/2008 7/33

Desired state

0

5

10

15

20

25

1 2 3 4 5 6 7

Traffic Capacity

5/2/2008 8/33

Capacity Catch-up story

0

5

10

15

20

25

30

35

1 2 3 4 5 6 7

Traffic Capacity

5/2/2008 9/33

HIAL traffic dynamics

0

2

4

6

8

10

12

14

FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 (est)

mil

lio

n p

ax p

.a.

Pax p.a. Planned Capacity

5/2/2008 10/33

2008

60 - 65 Aircraft Movements on Runway 2008

New Runway/Expanded T1

& T2 to be ready

2010

New Integrated Terminal T3 with 34

million pax capacity to be ready

2010

High speed rail link city center

connectivity to be achieved

5/2/2008 11/33

NEW TERMINAL – 2010

NEW TERMINAL

EXISTING int. TERMINAL

New Terminal Building

New Code F Runway

55 New Contact Stands

30 New Remote Stands (in addition to existing 64 stands)

4 new cargo stands

Cargo Complex Expansion

Multilevel Car Park - 9000 Cars

Widening of existing Roads

New Fire Stations

EXISTING DOMESTIC TERMINAL

5/2/2008 12/33

Saturation Plan - 2030

5/2/2008 13/33

A world class city deserves a world class airport.

– A city’s airport creates the first impression of the city and the country on any

international traveler. They are the first window to the country!

– A world class airport, equipped with state of the art facilities and systems, portrays

an image of prosperity, development and economic potential.

– This coupled with a strong service attitude creates a feeling of being welcome and

'at ease'

– On the other hand, a congested airport with poor facilities and systems portrays a

picture of neglect and apathy .

– Globally, world class cities boast of best-in-class airports that are an icon of the

city’s and country’s economic progress.

– An increasing number of developed and developing economies are making

significant investments in airport projects, in an effort to create global benchmarks.

Airports will shape business location and urban development in the 21st

Century as much as highways did in the 20th century, railroads in the 19th

And seaports in the 18th

5/2/2008 14/33

NEW TERMINAL BUILDING- T3

5/2/2008 15/33

ENTRANCE CANOPY

5/2/2008 16/33

T3- Departure Concourse Artists Impression

5/2/2008 17/33

T3 - Check In Hall Artists Impression

5/2/2008 18/33

T3 - Immigration Counters Artists Impression

5/2/2008 19/33

T3-Immigration Counter Area Artists Impression

5/2/2008 20/33

T3 - Canyon from Departure Level Artists Impression

5/2/2008 21/33

T3 - Arrival Level Travelators Artists Impression

5/2/2008 22/33

T3 - Arrival Level Baggage Reclaim Area Artists Impression

5/2/2008 23/33

T3 - Arrival Level Canyon Artists Impression

5/2/2008 24/33

DIAL Working on aggressive Commissioning schedule

DIAL also compares favorably on cost

Airport Capacity Time

Changi Airport - Singapore 22 Million 76 months

Heathrow T5 25 Million 60 Months

IGI Airport 34 Million 37 months

Beijing Airport New Terminal

for Olympics

25 Million 36 months

5/2/2008 25/33

Project Site

Hyderabad Urban Development Authority (HUDA)

Hyderabad Airport Development Area (HADA)

GHIAL- 5495 acres

Begumpet

Airport

25

5/2/2008 26/33

New Hyderabad

International

Airport

Inner Ring Road (West) with number of flyovers

4- Lane Elevated Express Way for

11.6 KM with 6 lane at-grade road

National Highway-7 for 9 KM of 6Lane

8 –lane Outer Ring Road for 24.38km

8-lane Inner Ring Road (East) of around 30 Km

New 4-Lane Road(P7)

SD Hosp.

Begumpet

Airport

Access Road from NH-7

Access Road from Srisailam State

Highway

Srisailam Highway

Connectivity to the New Airport

5/2/2008 27/33

Going forward, metropolises are giving way to

‘Aerotropolises*’, bolstering economic growth further.

– Aerotropolis is a set of clusters of aviation-linked businesses along with

supporting social infrastructure radiating outward from an airport.

– Aerotropolis can stretch up to 15 miles outward from airports along

transportation corridors and attracts various types of connected

businesses ranging from time-sensitive manufacturing and distribution to

social infrastructure like hotels, entertainment centers.

KLIA is intended to serve Malaysia’s planned Multimedia Super Corridor, promoted as the information technology center of Asia.

SkyPlaza, opened in 2006 near Hong Kong International Airport, features a mix of retail, entertainment, and office uses.

5/2/2008 28/33

A massive ‘Aerotropolis’ is being developed around the world’s

largest international airport in Dubai.

– Dubai World Central (DWC) is a massive, multi-

phase development centered around the world’s

largest greenfield international airport:

• Planned as a 140 square kilometer city at

Jebel Ali, south of Dubai city center.

• Creates the world’s first truly integrated

multi-modal logistics platform with all

transportation modes, logistics and value-

added services

• These include product manufacturing and

assembly in a single-bonded free zone

environment made up of Dubai Logistics

City, Dubai World Central International

Airport and Jebel Ali Port.

• Will have a cluster of specialized zones

like Residential City, Commercial city,

Enterprise Park and a Golf Resort.

Overview: Dubai International Airport Expansion

New Jebel Ali Airport New Jebel Ali Airport

Jebel Ali will be an 'Aerotropolis' and will house some 750,000 people eventually

5/2/2008 29/33

The current economic scenario is ideal for the

development of ‘Aerotropolis’ at major Indian airports.

– India is one of the fastest growing economies in the world today

and its aviation sector is growing rapidly.

– The airport infrastructure is undergoing a process of modernization

and privatization.

– Large tracts of land maybe available for commercial development

adjacent to these airports, especially the Greenfield airports.

– The CBDs in most of the major Indian cities have deteriorating

infrastructure and are saturated, with no growth vector available.

– This situation is similar to what other major Asian cities faced a few

years earlier.

GMR is evaluating the 'Aerotropolis' concept for both the Delhi and Hyderabad airports

5/2/2008 30/33

Expected investment in sector

Development in pipeline Cost (Rs.billion)

Delhi modernization 89

Mumbai modernization 58

Chennai/Kolkata 38

35 Non metro airports 76

Greenfield Kannur 9

Total 270

5/2/2008 31/33

Aero charges are a recovery of cost incurred

unless subsidized

5/2/2008 32/33

Aero charges - 747

0

5000

10000

15000

20000

25000

Toro

nto LB

P

Melbo

urne

Brazil

- Cat

I

German

y

UK - Heat

hrow

Fran

ce

Sydney

Inch

eon

Hongkong

Japan

Chicago

Thail

and

Singa

pore

Saudi A

rabia

NewYork

- JF

K

Montre

al

Mala

ysia-

KL

China

India

Los A

ngele

s

Dubai

FOR B747-400 TYPE; 394.6 T; 260 PAX

US$ per ATM

5/2/2008 33/33