Transition begins as Bahrain goes private

Posted on 30 April 2010 in Airports

Bahrain's international airport has begun the transition that sees it move from being run by the country's department of Civil Aviation Affairs to operate as private business with greater transparency and wider opportunities for international contractors and service providers.

As the region’s Airport Show opens in neighbouring Dubai, many exhibitors will be looking for visitors from Bahrain Airport Company, with an aim to get a place on the shopping list of the new owners.

The new management  – backed by the country’s sovereign wealth fund, Mumtalakat – aims to create an aviation hub. It will be responsible for managing many departments, including airport operations, engineering & planning, information & communication technology, commercial & investments, human capital & support services, finance, and branding & communications.

The CAA will continue to manage and have responsibility for traditional safety issues and operations and provision of ATC.

According to the company, transition action plans have been implemented and are, so far, a success. As part of this transition, more than 400 staff members from the Civil Aviation Affairs (CAA), which include the departments of airport operations and engineering & maintenance, have recently received the invitation to renew their employment under the management of the Bahrain Airport Company. The acceptance of offers was high.

“This move has been long in the making and there’s an air of optimism around the new prospects it brings,” said Kamal Ahmed, acting chairman of Bahrain Airport Company. “The new management structure is designed to create streamlined processes in order to deliver a comfortable airport environment to all users and partners of the Bahrain International Airport.

“With operational excellence, we aim to transform Bahrain International Airport into a global aviation hub as well as one of the world’s leading airports. This is the vision which we aspire to achieve.”

Chief executive , Dr Osama Alali, added: “There has been a large amount of press about the airport’s development plans and the reality of it is beginning to take shape, starting with this new influx of staff. A comprehensive action plan has been set for Bahrain International Airport, including modernisation and expansion of the airport infrastructure as well as the optimisation of operations efficiencies. This will create an unparalleled airport experience for both the end-user as well as Bahrain Airport Company partners.”

Mumtalakat has estimated a BD1.8bn ($5bn) expansion programme to meet the demands of the next 30 years – this is to meet projected passenger figures of 27 million – three times what the airport serves today.

Two new terminals will be built over the next four years. According to Dr Alali, the first – Terminal 2 – will be commissioned in 2012 and Terminal 1A will follow a year later.

“All modern facilities, including recreation and leisure areas, shopping centres, hotels and anything else that a modern traveller needs, will be incorporated into the new development,” Dr Alali said.

The current main terminal at the airport is scheduled to be demolished in 2014 to be replaced with a new larger Terminal 1.

According to BAC, the architects will be appointed later this year and the main contractors appointed next year. “The expansion will ultimately create 110 aircraft stands, including 87 with airbridge gates.

Cargo is also being increased from the current 350,000 cubic metres to 1.5 million.

Germany’s Munich Airport has been helping the Bahrainis with ground handling plans to help the airport manage the transition while new systems are being put in place.

“We are working at giving the airport an overall new look in the meantime,” Dr Alali said. “We are working in partnership with other companies to improve people skills and general cleanliness.”

New technologies at the airport will see an end to the pre check-in screening.

In the meantime a new joint venture has been formed between German airport services company Hochtief Facility Management and BAC for the facility management of the airport.

The new venture will initially employ around 170 people who will be involved in the operation of all technical systems and the airport infrastructure.

The contract will run for six years and is worth roughly $115 million for the first six years.

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