Post-war civil aviation takeoff at BIA has more scope: Experts

Monday, 9 September 2013 00:16 - - {{hitsCtrl.values.hits}}

International flight movements in 2012 up 11% to 48,416
Based on a 24x7 operations, this is on average 5 flights per hour
During peak times BIA handles a maximum of 8 arrivals per hour but there are times when only 3 to 1 are handled
Opening of Colombo-Katunayake Expressway with quick access will require industry to revisit timings
Aviation experts say dual pricing of peak and off peak hours at BIA will lure more traffic as well as ease congestion

Post-war civil aviation may have taken off, but industry experts are of the view that there is still vast scope to maximise on existing capacity at the Bandaranaike International Airport (BIA) as well as properly harness the benefits of the soon-to-be-opened Colombo Katunayake Expressway. With the rebound in tourism since the end of the conflict in May 2009, BIA has been handling record numbers of passengers. Last year passenger traffic topped the seven million mark, up from 5.26 million in 2010 and 6.1 million in 2011. The crossing of the seven million mark last year was despite BIA’s design capacity being only five million passengers. Financial performance too has improved significantly. However, when data is drilled harder, the performance could be much better – exposing the fact that there is scope for improvement. For example, last year BIA handled 48,416 international flight movements, up by 11% over 2011. As airports operate 24x7, this in effect mean around five flights per hour on average. Even if one ignores this bottom line assessment, according to industry experts the BIA handles a maximum of eight arrivals per hour between 0500 hours and 0600 hours on most days whilst during 10.00 and 1000 hours a maximum of seven flights are serviced.

This, analysts viewed could be the peak business for the BIA. However, based on traffic patterns on average between 12 noon and 4 p.m. BIA receives the least number of flights. Analysts said if one factors eight flights per an hour as the best performance and average of five per hour on an annualised basis, then there are ample slots available between 12 noon and 4 p.m. BIA also handles only one arrival for example at 7 p.m. in the evening on most days. They said one reason why airlines preferred early morning and late evening operations was the day-time traffic congestion on the Colombo-Negombo route and elsewhere. However, the Colombo-Katunayake Express opening later this month will be an effective solution for often cited congestion on the road and analysts said post-expressway opening provides the authorities a window of opportunity to maximise BIA capacity during the daytime as well. Given this situation, aviation industry experts argued that BIA can come up with peak and off peak rates for landing charges, with the latter being priced favourably to attract more flights. This move, apart from luring more air traffic, will also lead to existing operators considering the rescheduling of their timings, thereby reducing the choke usually experienced at current peak times. Operation of a maximum of eight flights per hour, analysts said, stretches BIA’s resources and the bunching of flights also triggers delays at check-in, immigration and baggage collection. “A dual pricing arrangement will considerably ease congestion at peak as well as lure more flights or new operators. This in turn will make BIA more competitive and boost revenue to the Government,” analysts emphasised. It was pointed out that since airlines firm up their schedules much ahead of time, immediate action on the part of airport authorities will be critical to fully maximise the benefits of the opening of the Katunayake Expressway. A new scheme of dual pricing between peak and off peak periods with adequate notice to the trade will put the onus on airlines. If not, even with quick entry to and exit between Colombo and Katunayake via road, BIA will continue to face congestion during peak hours. “Unless this is done, BIA, the airline and travel industry will not fully gain from envisaged benefits of an expressway,” analysts opined. An average of seven or eight flight movements per hour would have seen around 70,000 international flight movements at BIA last year as opposed to over 48,000. The industry has also welcomed the ongoing phase two expansion at BIA to reach a design capacity of 15 million passengers by 2016 as well as improvements made in recent years. However they emphasised in the interim Colombo could have much improved flight management and business marketing success if dual pricing is introduced. Turnover of Airport and Aviation Services (Sri Lanka) Ltd. in 2012 was Rs. 11.1 billion, up by 19.6%, and operating expenses before depreciation was down by 13% to Rs. 5.2 billion. Finance cost rose by 27% to Rs. 1 billion and depreciation of fixed assets by 11% to Rs. 5.9 billion. Pre-tax profit was Rs. 3.86 billion, up by 80% and after tax profit rose by 97% to Rs. 2.7 billion. AASL reported its best year in 2010 with a bottom line of Rs. 4.8 billion on a turnover of Rs. 8.2 billion.