BIAL invites bidders for Terminal 2 retail contracts; terminal to open in April 2022

By Andrew Pentol |

The new Bengaluru International Airport Terminal 2 is due to open in April 2022.

Bangalore International Airport Limited (BIAL), operator of Bengaluru Kempegowda International Airport (BLR) is inviting bids from brands and operators to ‘develop a world-class destination for shopping, dining and entertainment’ at its new Terminal 2 which is due to open in April 2022.

As reported during an exclusive interview with Kenneth Rosvang Guldbjerg, Chief Commercial Officer during a visit to the airport in 2019, the new 255,000sq m terminal is part of a $2.5 billion capital development programme. This includes a second runway, expanded access roads and internal road infrastructure, utilities and a new multi-modal transport hub.

The new and existing terminals will be separate with all international flights departing from Terminal 2, which will have capacity for over 45 million passengers. BLR Airport, is one of the world’s fastest growing airports and the third largest in India, having welcomed more than 33 million passengers in 2019.

Guldbjerg told TRBusiness back in 2019 before the coronavirus (Covid-19) pandemic kicked in: “The new facility will be an integrated domestic and international terminal with commercial space of around 22,000sq m in phase one. This will grow to 40,000sq m in phase two.

“The entire commercial space planning strategy we have laid down encompasses different zones. These include ultra-luxury and luxury zones.”

SIX TO EIGHT-MONTH TENDER TIMELINE

BIAL was planning to issue the first set of Terminal 2 tenders (including duty free) in January 2020 and previously indicated to TRBusiness that it would welcome joint ventures. BIAL also indicated to this publication during the aforementioned airport visit that different contract lengths and terms would on the table.

A rendering of the check-in hall at the new Terminal 2 facility which will span 255,000sq m.

Tenders will be launched for more than 100 commercial concepts including duty free stores, advertising, retail and food and beverage over the next six to eight months.

BIAL says it will work with selected partners in developing a strong brand environment and sense of place through unique commercial concepts, innovative retail designs and exclusive product offerings.

The airport operator adds that its focus is on creating a premium and dynamic retail environment with an immersive digital experience and sensory engagement, while simultaneously developing the airport as the preferred destination to showcase iconic international brands and concepts — some for the first time in India.

In a statement received today (1 June) outlining the tender details Guldbjerg said: “Our objective is to create an exceptional experience for passengers travelling through BLR Airport, offering an elevated and luxurious environment, with a diverse product mix, great brands and excellent service, while focussing on sustainability and development based on care for the environment.”

Adapting to new demands as a result of Covid-19, BIAL has revised its commercial policy based on trust, collaboration and sharing of risks and rewards.

Commercial space will initially span around 22,000sq m before growing to around 40,000sq m.

The commercial policy endeavours to support partners during this period and help insulate them from such situations in the future. The financial model is synthesised based on a progressive calibration strategy. This is linked to passenger base and will be applicable throughout the duration of the contracts.

Additionally, the evaluation strategy for the tenders is also adapted accordingly, giving 60% weightage to technical proposals and 40% weightage to financial proposals. These efforts are focussed on making BLR Airport the most preferred partner in the aviation industry.

The new T2 will be ‘a dedication to the beautiful city of Bengaluru’ and designed to reflect the city. It will be based on four pillars — technological leadership, a terminal in a garden’, environmental & ecological stewardship and a celebration of Karnataka’s rich art, heritage and culture.

Hari Marar, Managing Director and CEO, BIAL said: “At BIAL, we take our partnerships very seriously. At every stage of the journey, we work with our partners in tandem, knowing that in their success lies the success of the airport ecosystem.

“As air travel recovers following the Covid-19 outbreak, BIAL wants to be aligned with partners and stakeholders to ensure an unparalleled range and quality of service.

“We look forward to world class retail from across the world coming together with BIAL to make T2 at BLR a place for the discerning traveller.”

The tenders will be uploaded on the e-portal: https://commercial.bialtenders.in/. Interested bidders are requested to check the website for further information on the tender process.

In addition, bidders must send an email expressing their interest to [email protected].

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