Bangalore International Airport Limited (BIAL), the operator of Kempegowda International Airport, has secured the prestigious AAA credit rating from prominent agencies. This rating indicates the highest level of financial security and minimal credit risk. With this accomplishment, Bengaluru Airport has further solidified its standing in the Indian aviation industry. Read on for more details.
BIAL, the operator of Kempegowda International Airport, has received the AAA credit rating from leading agencies such as ICRA Ltd, India Ratings and Research Pvt Ltd, and Crisil Ratings Ltd. This highly sought-after rating denotes the utmost level of financial safety and minimal credit risk, reinforcing Bengaluru Airport’s role as a key player in India’s aviation landscape.
As reported by the Times of India, BIAL’s achievement highlights its position as the third-largest airport in India and the largest in South India, boasting an annual passenger handling capacity of 51.5 million. The AAA rating underscores BIAL’s strong market position and financial robustness, backed by consistent growth in passenger traffic and revenue.
The report further indicated that passenger traffic at Kempegowda International Airport is anticipated to grow by 10-11 percent in the Financial Year 2025, reaching around 41-42 million passengers, an increase from 37.5 million in FY2024. BIAL’s operational income is also projected to grow by 20 percent in FY2025, driven by the airport’s expansion and heightened revenues from both aeronautical and non-aeronautical services.
The long-term concession agreement granted to the airport, which extends until 2068, offers substantial financial stability and flexibility. Moreover, its strategic ownership structure—with Fairfax Group owning a 64 percent stake, Siemens 10 percent, and the Airports Authority of India and the Government of Karnataka each holding 13 percent—enhances its operational and financial capabilities.
To accommodate the increasing demand, BIAL has unveiled an ambitious investment plan of approximately ₹16,000 crore between FY2025 and FY2026. This plan aims to expand Terminal 2, upgrade infrastructure, and undertake other significant projects, with the goal of raising the airport’s capacity to 80 million passengers annually.
Bengaluru, recognized as India’s third-largest metropolis, has its current Kempegowda International Airport (KIA) functioning at maximum capacity.
Kunigal has emerged as a leading candidate for Bengaluru’s second international airport
As the demand for air travel in Bengaluru continues to rise, the Karnataka government is nearing the conclusion of a site selection for the city’s second international airport. Kunigal, a town located along National Highway 75, has surfaced as the prime candidate, with the region between Dabaspet and Kunigal being evaluated for the new airport following an extensive assessment, according to a report.
Home Minister G Parameshwara addressed the issue, stating, “The Tumkuru region, which includes Kunigal, is being considered. The intention is to position the new airport near Dabaspet, in proximity to Tumkuru, though no confirmation has been made yet. Tumkuru is evolving into Asia’s largest industrial center, expanding across 20,000 acres in stages. More than 150 industries have already set up operations, and plans for a Japanese township are underway. Significantly, HAL’s helicopter manufacturing facility has commenced operations near Mettur. Should this site be selected, taking into account all these developments, it would yield considerable advantages,” as reported.
“Following a thorough examination, the zone between Dabaspet and Kunigal along National Highway 75 has been pinpointed as the most appropriate location for the new airport. Nonetheless, the ultimate choice will hinge on technical viability,” Parameshwara noted.
Bengaluru, recognized as India’s third-largest metropolis, has its current Kempegowda International Airport (KIA) functioning at maximum capacity, and with major urban centers like Delhi and Mumbai poised to inaugurate new airports within the next year, Bengaluru must keep pace, as indicated in the report. The second airport will alleviate the congestion at KIA, enabling improved connectivity.
However, one of the hurdles in the site selection process is a regulation that mandates new airports to be situated at least 150 km away from the existing airport, a requirement that remains in effect until 2032. This constraint narrows the array of possible sites. Although the existing HAL Airport, which previously served as Bengaluru’s main airport, is no longer a feasible option for significant commercial flights, it is excluded from expansion plans.
Given Bengaluru’s increasing demand for air connectivity, the second airport is vital to support its future expansion. While Kunigal appears to be a strong contender, a comprehensive technical evaluation will ultimately ascertain its suitability. In the meantime, bordering states are also vying to establish airports near Bengaluru, potentially intensifying competition for valuable air traffic.
For all aviation-related guidance (DGCA ground classes, pilot training, cabin crew training)
Contact us https://contrail.in/
phone numbers +91 78457 69399