The Hindu : Karnataka / Bangalore News : Taxi services: KSTDC loses to private operators

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Tuesday, Feb 05, 2008
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Karnataka

Karnataka - Bangalore

Taxi services: KSTDC loses to private operators

Sharath S. Srivatsa

BIAL selects two for the job after tendering process ends

There were at least six competitors, including KSTDC
The operators are offering premium segment cars for service

BANGALORE: The dream of Karnataka State Tourism Development Corporation (KSTDC) to operate taxi services from the Bangalore International Airport at Devanahalli seems to have crash-landed. KSTDC, that is now operating the pre-paid taxi services from HAL Airport, has lost out on the contract as the Bangalore International Airport Ltd. (BIAL) has selected two private operators to do the job.

At least six companies, including KSTDC, had participated in the tender process offering premium segment cars.

The KSTDC, which has been running the pre-paid counter at HAL Airport since 1998 through a fleet of 350 luxury segment cars, stands to lose approximately Rs. 2 crore a year, as it would not be able to offer taxi services once airport operations shift to BIAL.

The two companies that have been selected will be providing 400 premium segment cars each to meet the demand.

Sources in KSTDC told The Hindu that they had offered a better percentage to BIAL based on the volume as against the royalty being paid per trip to Airport Authority of India (AAI) at present. Expressing disappointment over not getting the contract, the sources said: “We had offered a same tariff structure that we are operating now, and we have been writing to BIAL on securing the contract for the last six months.”

It is learnt that KSTDC had offered BIAL a percentage on the volume as it felt that offering percentage on each trip would not be viable since the distances to be covered were long and many trips could not be taken up by each taxi.

The sources claimed that the KSTDC representatives were not even called for negotiations, and have been only informed that the two companies have been selected to offer the services.

“Unlike government tendering process, which is transparent, we do not even know the price difference between the competing companies.

“The BIAL does not feel obligated to inform the price gap or call for negotiations,” the sources added.

Meanwhile, Bangalore Airport KSTDC Pre-paid Taxi Drivers Welfare Association General Secretary R. Neelakantappa said that the BIAL could have given two counters, one for KSTDC and the other to a private operator, in the new airport on the lines that exist in the present airport.

“More than 700 families will lose employment by the end of March when the airport shifts to the new location. We will protest against the decision of BIAL,” he added.

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