R-ADAG's airport bid grounded

Reliance Anil Dhirubhai Ambani Group's foray into the aviation infrastructure sector has hit a roadblock again.

After losing the Mumbai and Delhi airport modernisation projects to rival bidders, group company Reliance Energy has lost the bid to set up ground handling facilities at the upcoming Bangalore international airport.

Bangalore International Airport Ltd has selected the consortium of Air-India/Singapore Airport Terminal Services and Globe Ground India for ground handling. Globe Ground India is a joint venture between German airline Lufthansa and New Delhi-based Bird Group.

Reliance Energy had teamed up with Texas-based cargo handling major Worldwide Flight Services to bid for cargo handling and ground handling services at the airport.

Earlier, Reliance Energy had lost cargo handling to a consortium of Air-India/SATS and Bobba Group/Menzies Aviation.

BIAL CEO Albert Brunner has confirmed the development. Air-India is the country's leading ground handling operator with a market share of 55 per cent.

"Air-India is earning a revenue of over Rs 500 crore (Rs 5 billion) per year from ground handling. It has a presence in Kozhikode, Ahmedabad, Amritsar and Pune.

The airline is also saving as it serves own fleet too," according to industry sources. Mumbai-based Cambata Aviation is the other market leader in ground handling.

Recently, Punj Lloyd entered into a joint venture with Swissport International, a world leader in the ground handling industry. The JV is looking at developing projects in Indian airports, leveraging on Swissport's brand and know-how and Punj Lloyd's local expertise.

Meanwhile, the Air-India-led consortium has selected Singapore-based Architects Team 3 Pte for the design and construction of Bangalore International Airport's cargo handling infrastructure.