Bangalore int'l airport heading for bankruptcy By Faye D'Souza/CNBC-TV18 http://www.moneycontrol.com/india/news/business/bangalore-intl-airport-headi ng-for-bankruptcy/20/20/352054
<It does seem like the Semiens, L&T, and Zurich airports consortium that built the Bengaluru International Airport is headed for trouble. BIAL said it would be bankrupt in a few years if it were not allowed to charge domestic passengers a user development fee every time they fly out of Bangalore....BIAL officials said **they needs to recover the Rs 2,500 crore invested in the airport in the first five years**. The user development fee is an integral part of their recovery plan. The airport is also under tremendous pressure to expand capacity and the money raised from the fee surcharge will be pumped back into the project. It would be challenging for the consortium to raise more funds from their investors if the project is not showing returns.> Note that the time to breakeven is set for a mere 5 years when the concession may be for 30 years, renewable for another 30! This is what happens when an airport project is treated as a business rather than as infrastructure for the public. For Mopa the government should ensure that the time to break even is at least 10 years. User charges should kick in only after that to fund any expansion. It needs to find a consortium which is interested in Goa rather than just making money.
