Managing director Kiran K. Grandhi said the company, Hyderabab International Airport Ltd, was spending US$300mil to build the first phase of the airport to cater to a maximum five million passengers a year.

With a landbank of 5,500 acres, the airport could be further expanded to cater to 40 million passengers. The current airport can handle up to three million.

“We want HIA to be the aviation hub in India for cargo and passengers as it is centrally located, offering travel time of only two hours to any other city in India. Unlike other airports in India, HIA does not have visibility problems,” he said.

The funding for the first phase is via debt (60%) and equity (40%). When completed, the airport can boast of having the longest runaway in India – 4,260 metres.

The existing airport is government-owned, but the new one will be privately owned. GMR is the major shareholder in HIA with 63% stake, while the Airport Authority of India and the state government of Andresh Pradesh have 13% each.

GMR is also bidding to manage the Mumbai and New Dehli airports in partnership with Frankfurt airport. Several international players are bidding for airports in India that are being privatised.

Meanwhile, Air New Zealand has shown keen interest in flying into Malaysia, but was unlikely to do so in the immediate term due to the prevailing high oil prices.

“We are evaluating market opportunities, and although we believe there is enough traffic at KLIA, it is an issue of yields,” said Air New Zealand network analysis manager (market planning) Pete Yap.

“For now the yields are too low; but with higher fuel efficiency it would be possible. But we do not see it happening over the next two years. The planning is long-term.”

Air New Zealand was among 250 airlines that attended the 10th World Route Development Forum held in Madrid.

Yap cited increased competition in the South-East Asia market, the rising number of low-cost carriers being a factor Air New Zealand would have to study before flying to any stop in the region.

Nonetheless, he sees the entire region as offering a lot of traffic volume.

Hainan Airlines said it would increase frequency into KLIA if demand rose. It begins its maiden weekly flight into KLIA today.

“We will increase frequency into KLIA; but this will depend on demand,” said Wang Xin Yu, Hainan Airlines Company Ltd's routes network management centre assistant manager.

“We would be using the 737-800 aircraft which can sit 164 people, and expect 80% load factor on the Haikou-KL route,” added Wang, who sees Haikou as the second gateway into China.