TURKEY. A consortium co-led by India’s powerful GMR Group has pledged to open the new terminal at Sabiha Gokcen International Airport (SGIA) in Istanbul a year ahead of its original opening date of October 2010.
The consortium РIstanbul Sabiha G̦k̤en International Airport Investment Development and Operations Inc (Sabiha G̦k̤en) Рcomprises Limak Insaat Sanayi San Ve Tic Turkey (40%), GMR Group (40%) and Malaysia Airports Holdings Berhad (20%).
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The consortium was officially awarded its 20-year operating licence at a groundbreaking ceremony held on Saturday. The guest of honour, Turkish Prime Minister Recep Tayyip Erdogan, asked the consortium to reduce the terminal completion time from the agreed 30 months to just 18 months.
“We cannot wait that long,” he said, adding that he wanted the terminal to be operational on 29 October 2009 – Turkey’s Republic Day.
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The Prime Minister of Turkey with the consortium partners on stage, asking them to complete the project in a record 18 months instead of the stipulated 30 months |
The Chairman of Istanbul Sabiha Gökçen International Airport Investment Development and Operations Inc, Nihat Özdemir, said that the rapid growth of the airport will be accelerated. He noted: “In parallel with our country’s strong growth performance of recent years, total passenger figures increased by an average of +14% annually in Turkey’s airports between 2000 and 2007. This increase has been about +13% in Istanbul in the same period, while Sabiha Gökçen managed an increase of six times in comparison with Turkey and Istanbul’s averages, and grew about +80%.
“These figures show Sabiha Gökçen’s potential. Our target is to continue Sabiha Gökçen’s fast growth with the help of the dynamism provided by Istanbul’s Anatolian side, the new attraction centre for the business world and construction sector and our investments. When we complete our new international terminal in 2010, in order to meet the increasing passenger capacity, we will be opening Istanbul’s airport of the future.”
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GMR Group Chairman GM Rao: Big rise in duty free revenues promised |
GMR Group Chairman GM Rao pledged to open the terminal according to the new schedule. He said: “We would like to affirm to the people of Turkey that our involvement in the Sabiha Gokcen project is just the beginning of what we hope will be a long and mutually fruitful association for the GMR Group and your glorious country. We are very keen on partnering and nurturing Turkey’s journey of achieving economic growth by actively participating in its major infrastructure projects in the key areas of energy, airports, real estate and expressways.”
The consortium will carry out all aeronautical activities as well as managing the non-aeronautical and commercial businesses – including duty free shopping, food & beverage, a hotel, car parking and advertising. The new-look SGIA will offer world-class infrastructure and facilities offering good connectivity to all parts of Turkey.
Sabiha Gokcen was launched as Istanbul’s second international airport in 2001, after the existing Istanbul Atatürk Airport had reached saturation. Since its inception the new airport has recorded extraordinary passenger growth of +80%. Europe’s newest greenfield airport, it was also the region’s fastest growing in passenger terms between 2002 and 2007.
The consortium will add 10 million to the airport’s annual passenger capacity with the new terminal, bringing the total capacity to 15 million passengers.
Maximising commercial revenues will be vital for the Turkish-Indian-Malaysian consortium. Unlike the GMR-run airports in Delhi and Hyderabad, India, revenues for the consortium will come entirely from non-aeronautical sources. Aeronautical revenues will accrue to the Turkish government. GMR said: “The new international terminal will have cafes and restaurants, appealing to different food tastes, and also world-class duty free shops.”
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The consortium will generate its revenues from sectors such as retail, cargo, aviation fuel and passenger service fees. Duty free shopping will account for almost 25% of the airport’s revenues, GM Rao told reporters.
An average passenger spends about €12 at Sabiha Gokcen, compared to €3.5 at Delhi’s Indira Gandhi International Airport, he said. Such figures will rise significantly once the new terminal is completed, he said, as it will enjoy much greater retail space.
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EDITOR’S NOTE:GMR was profiled, along with its Hyderabad and Delhi airport operations, in the “˜BRIC’ issue of The Moodie Report Digital Print Edition in September 2007. Click on the icon to download the article.
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