Kempegowda International Airport Bengaluru secures AAA rating, unveils ambitious growth plans – ET TravelWorld

Kempegowda International Airport Bengaluru (BLR Airport) was awarded the prestigious AAA rating (Stable Outlook) by ICRA Ltd, India Ratings and Research Pvt Ltd, and Crisil Ratings Ltd on Tuesday.

“We are honored to receive the AAA rating from ICRA, India Ratings and Research, and Crisil. This recognition reflects our robust business model and our commitment to sustainable growth. With regulated aeronautical revenues and our strategic investments in expanding capacity and enhancing the passenger experience, we are well-positioned for continued success. Our focus remains on delivering long-term value to all stakeholders while maintaining a solid financial foundation,” said Bhaskar Anand Rao, Chief Financial Officer of Bangalore International Airport Limited (BIAL).

The AAA rating highlights BIAL’s operational scalability, driven by rising passenger numbers, the launch of Terminal 2, and consistent revenue growth. This outlook emphasizes BIAL’s long-term growth potential, supported by diverse revenue streams and excellent financial flexibility.

Goals for BIAL

• Passenger Traffic Growth: Passenger traffic at BLR Airport is expected to increase by 10-11 per cent in FY2025, reaching approximately 41-42 million from 37.5 million in FY2024.

• Concession Agreement Extension: BIAL’s concession agreement has been extended until 2068, enhancing its financial flexibility.

According to a release, the airport’s expansion, steady rise in passenger numbers, and increased aviation and non-aviation revenue sources are projected to drive a 20 per cent operating income gain in FY2025. BIAL’s operational and financial capabilities are further bolstered by its strategic joint ownership: the Airports Authority of India (13 per cent), Siemens (10 per cent), Fairfax Group (64 per cent), and the Government of Karnataka (13 per cent).BIAL has ambitious plans to increase its capacity to handle 80 million passengers annually by investing approximately INR16,000 crores between FY2025 and FY2029. This investment will primarily focus on the expansion of Terminal 2, infrastructure upgrades, and other key projects.