Hyderabad International Airport
Group 2
Abhinav Chandra
Ankit Agarwal
Gaurav Kumar Kalal
Nikhilesh Sharma
Vaze Shrinivas
Tanuj Malkani
Introduction
• Hyderabad has the distinction of being the most
developing metropolis in the country
• largest urban area in Andhra Pradesh
• New Hyderabad International Airport on a
greenfieldsite
• The Airport is strategically positioned in relation to all
other domestic Airports in India providing excellent
opportunities to function as a hub for both domestic
and international passenger and cargo traffic. The
Airport therefore reflects the long term intention of
becoming a major domestic and international hub.
Vision
• To build an Airport of international standard
• To establish Hyderabad International Airport on the Global
Aviation Map
• Contribute to the prosperity of the Region
• Particular emphasis will be placed on:-
– High standards of safety and security
– Functionality and fiexiblity
– High level of service for the passengers
– Modem architecture
– Efficient operation and maintenance
– Cost efficiency
– Environmental friendliness - A Clean and Green Airport
Public-Private Partnership Project
• GMR Group (63%)
• Malaysia Airports Holdings Berhad (11%)
• State Government of Andhra Pradesh (13%)
• Airports Authority of India (AAI) (13%)
• Financing Structure:
Equity Rs.378 Crores
Debt Rs.960 Crores
Interest Free Loan from State Rs.315 Crores
State Support as Grant Rs.107 Crores
Project Life Cycle
Airport Building
• Air traffic to stabilize
• Civil aviation sector has been exhibiting an extraordinary
growth rate since 2006
– 46.5% in 2006
– 32.5% in 2007
• by 2020, Indian airports are estimated to handle
approximately 100m passengers and cargo in the range of
3.4m tones p.a.
Valuation
• HIAL's revenues have a scope to grow with an increase in the
traffic
• being a greenfield development, the airport has a permission
to levy User Development Fee (UDF) for every departing
domestic and international passenger
• with expansion of non-aero revenues, the EBITDA is expected
to grow in the immediate future
• valuation is based on a 60 years model and incorporates
revenues from aero side only
• valuations to that extent are conservative and have a scope of
upside, going forward
Master Plan
• Ultimate capacity of 40 million passengers per annum
• Will be able to handle the New Large Aircraft (NLA)
including the new Airbus A380
• two runways and two terminal buildings
• a separate terminal for low cost airlines
• The Airport facilities provide for:
– very short taxiing distances for aircraft
– a terminal concept that is suitable for hub operations both
in the short and the long term
– good access to the city both by road and rail
– investment which is lower than for the other options
considered
Risk Management
• Stakeholders
– GMR Infrastructure & Malaysia Airport Holding Berhad
– Construction Contractors
– Government of Andhra Pradesh
– Airports Authority of India
– Airline Operators
– Local Power and Water supply (HMWSSB)
– Citizens
Risk Management – Risks and
Responses
• Build-Own-Operate-Transfer Model
• Revenue and Market risks lie with HIAL consortium
• Risk: Variation from Air Traffic forecast figures provided
by government
– Mitigation Strategy: Air Traffic and Passenger Forecasts by
an independent agency (SH&E Air Transport Consultancy)
• Risk: Possible Delay in completion and cash flows
– Mitigation Strategy: Alternative uses of land for
horticulture, golf courses, motor sport and storage areas
• Risk: Land Expropriation
– Mitigation: Land bought out by government
Risk Management contd…
• Risk: Environmental hassles/cases
– Mitigation Strategy: Environmental Clearance on 3
fronts – Noise, Air and Waste
• Risk: Competition for Air Traffic from BIAL
– Risk Retained
• Risk: Political force majeure/unrest
– Risk Retained
• Risk: Design insufficient for traffic
– Mitigation: Design revised to 12mppa from 5mppa
Work Breakdown Schedule
Project Priority Matrix
Constraint Enhance Accept
✔
Time
✔
Scope
✔
Cost
PRINCIPLES OF FLEXIBILITY AND
EXPANSION
• clearly defined strategy developed which
allows incremental and modular expansion to
each area of the Airport
• without major rebuilding of existing areas
• with a minimum of operational disruptions
• PHASE 1A
– facilities required to meet the forecasts and to
achieve the stated vision
– terminal designed to have the capacity to handle 5
million passengers per annum
– area of 104,100 sq m which includes:
• technical services zone of 17,000 sq m below the arrivals
level
• an outside circulation area at departures level of 1750 sq m
• other buildings namely
– ATC and technical
– building, cargo (100,000 tonnes capacity)
– aircraft maintenance
– airport maintenance
– CFR station and utilities with combined area of 35,000 m2
• PHASE 1B
– all phases beyond Phase 1A had to be triggered by
actual traffic volume
– capacity to be increased to 7 million passengers
per annum by adding
• passenger boarding bridges and
• aircraft stands on the north side of the pier
– Low cost terminal (LCT) for 0.3 millions passengers
per annum had to be built
– VIP terminal
– facility for General Aviation (GA)
• PHASE 1C
– capacity of the terminal building to be increased
to 10 minion passengers per annum
– with an additional area of 37,000 sq m
– capacity of the LCT to be increased to
– area of additional maintenance facilities, catering
and offices will be of the order of 40,000 sq m
• PHASE 2
– Terminal 1 should be approaching full development
– expansion to an area of 250,000 sq m and
– LCT to be expanded to its full capacity of 1.5 million
passengers per annum
– second runway needed before the construction of
Terminal 2
– major increase in all the established
– major increases in hotel, office, cargo and
maintenance facilities
• Phase 4
– airport has to reach its full maturity
– additional floor area of 430,000 sq m to be
constructed bringing the total built area to 900,000 sq
m
– ultimate master plan is for 40 million passengers per
annum
– Master Plan allows freedom for:
• expanding both airside and landside facilities within the
Airport site
• further acquisition of land to the north and south will allow
expansion of the runway system with a third and fourth
runway resulting in the parallel runways on both sides
A Modular Airport
• Phase 1A: upto 5 million passengers per
annum and area of 104,100 m2
• Phase 1B: capacity increased to 7 million by
adding passenger boarding bridges and
aircraft stands
• Phase 1C: capacity increased to 10 million
with an additional area of 37,000 m2
Phase 2
• Terminal 1 reaches 20 million passengers per
annum with area of 250,000 m2
• Second runway and Terminal 2
• Major increases in hotel, office, cargo and
maintenance facilities with total builtup area
of 470,000 m2
• Final capacity of 40 million and area of
900,000 m2
Project Status
Milestones Date
Initiation of land acquisition March 2004
Completion of rehabilitation May 2004
Handing over of site to HIAL June 2004
Start of boundary wall construction June 2004
Completion of boundary wall January 2005
Start of site preparation works January 2005
Financial Closure August 2005
Concrete Pour October 2005
Elevated Slab Pour March 2006
Operations Start March 2008
Dream vs. Reality
• COST
– Estimated – Rs 1761 crores according to Govt.
sources
– Actual – Rs 2478 Crores as per news agencies
• TIME
– Estimated – 22nd August 2008 as per Govt. Sources
– Actual – Inauguration on 16th March 2008
Analysis
• Reasons for Cost Overrun
– Under estimation of Passengers leading to
underestimation of costs by 500 crores
– Hike in Cement and Steel prices ( Tried to mitigate by
renegotiating contracts)
– Pressure for On time completion
– Time over run by a Week initially due to handling
issues and delaying closure of old airport.
• No Time Over Run Occurred
