Air India, BIAL sign agreement to develop Bengaluru airport as hub

Air India and Bangalore International Airport Limited (BIAL) announced on Monday that they have signed a pact to develop the Bengaluru airport as an aviation hub, encompassing the construction of a dedicated domestic lounge, expansion of international services, and establishment of a maintenance, repair, and overhaul (MRO) facility.

“Air India (along with other Tata Group airlines – AIX and Vistara) and BIAL will collaborate to enhance international connectivity, operational efficiency, and passenger experience over the next five years,” the joint statement noted.

Air India is wholly owned by the Tata Group, while AIX Connect and Air India Express are its wholly-owned subsidiaries. Vistara, a 51:49 joint venture between the Tata Group and Singapore Airlines, is currently undergoing a merger into Air India. The Bengaluru airport is operated by Fairfax-run BIAL.

According to aviation analytics firm Cirium, the Bengaluru airport presently manages approximately 5,145 flights per week. Tata-run airlines operate 1,538 of these flights weekly to and from the Bengaluru airport, representing a 30 per cent share in the airport’s network.

Air India and Vistara will strengthen their presence at the Bengaluru airport “establishing a dedicated domestic lounge for premium and frequent travellers,” the statement noted.

Air India has signed a Memorandum of Understanding (MoU) with the Karnataka government to establish a comprehensive MRO facility at the Bengaluru airport, the statement added.

“This underscores Air India’s commitment to strengthening its presence in Bengaluru and, over time, expanding its global footprint to meet the growing demand for direct long-haul routes originating from Southern India,” the statement noted.

Currently, IndiGo holds the largest flight network share at the Bengaluru airport, with 51 per cent of services to and from the airport operated by the airline.

First Published: Apr 08 2024 | 9:05 PM IST