Karnataka - Bangalore   

Consortium to build fuel facility at new airport

Special Correspondent

Bangalore: The consortium comprising Indian Oil Corporation Limited- Indian Oiltanking and Skytanking have won a 20-year deal to design, construct, finance and operate a central aviation fuel facility at the first "greenfield" private sector-owned and operated international airport coming up at Devanahalli near Bangalore.

Bangalore International Airport Limited (BIAL) has selected the Indian Oil, Indian Oiltanking, and Skytanking team as its strategic partner to operate the facility under the open access model. "This consortium emerged the number one bidder after an extensive technical and financial evaluation process," BIAL said in a statement. The aviation fuel facility is expected to cost Rs. 90 crores.

The open-access model allows every qualified fuel supplier to use the facility against a fixed throughput fee and allows airlines to get the best fuel prices in the market.

"Fuel prices have become one of the major cost-factors of airline operations. Airports have to offer airlines competitive fuel-price structures in order to be an attractive destination for them. The implementation of an open access model is, therefore, of strategic importance to BIAL," Stephan Widrig, Chief Commercial Officer, BIAL, said.

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