Monday, August 26, 2013

Clients versus hostages in Bengaluru International Airport

It is baffling that the state government last week decided not to oppose a hike in the fee currently charged to passengers for using Bangalore airport. Most frequent users of the airport don't feel that they have reached home when they land because the drive home is almost always longer than the flight. But the commute times of frequent fliers should hardly be a consideration for public policy; I'd like to make the case to the government that it should not only oppose the hike in passenger fees but also explore longer-term options for enhancing competition on three counts:
The first case is based on competition and transparency. Bangalore airport doesn't have clients but hostages who are currently forced to pay Rs 231 for each domestic flight and Rs 952 for international. This despite questions raised during the early days about shareholders giving themselves contracts for construction and whether the 13% stake the state government got via KSIIDC for 4,008 acres of land was adequate.
26/08/13 Manish Sabharwal/Times of India
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