Renegotiate with BIAL, HC tells governments

The Karnataka High Court on Wednesday directed the Centre, Karnataka government and the Airports Authority of India (AAI) to consider renegotiating with the Bangalore International Airport Limited (BIAL) on issues pertaining to closure of the existing HAL airport and reduction in user development fee (UDF) at the new international airport on the outskirts of Bangalore.
In its interim order, the two-judge bench of the High Court comprising chief justice Cyriac Joseph and justice Ravi Malimath expressed the court’s limitations of power and jurisdiction and lack of expertise in commercial matters.
The order, passed after hearing three public interest litigations filed in favour of the continuance of commercial operations at HAL airport, read: “Though we are not persuaded to pass an interim order directing the respondents not to close HAL airport for any commercial and civil aviation and not to impose UDF, we direct the governments of India and Karnataka along with AAI to renegotiate the above mentioned issues with BIAL and to explore the possibility of minimising incovenience and difficulties to public.”
The three petitioners, who urged the High Court to ensure that the HAL airport is operational, had cited the recommendations of the 31st Parliamentary Committee on Transport, Tourism and Culture which had suggested that the existing airport be kept open and the UDF be reduced.
Pointing to the increase in air passengers, the petitioners had argued that keeping both the new international airport and the HAL airport would be financially viable for BIAL.
But the state government and AAI had countered that the concession agreement signed with BIAL made it clear that no other airport should exist within 150 km from the new airport.
However, the petitioners told the court that the concession agreement had been amended on November 20, 2006 to increase the handling capacity of the airport from 4.5 million passengers per annum to 9 million passengers. So there is scope for modification in the agreement, the petitioners contended.
However, the interim order has now thrown the ball back into the BIAL court, legal experts maintain. Though the case has been posted to the second week of June for final disposal, BIAL, which has scheduled to inaugurate the airport on May 11, can tell the state government, centre and AAI that the suggestion is not economically feasible and it is against the agreement.
BS Reporter / Chennai/ Bangalore April 17, 2008
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