Page 31 - AAA SEPTEMBER - OCTOBER 2013 Online Magazine

FEATURE INdIAN AIRPORTS

Indian aviation is set
for transformational
growth, and may
require construction
of 40 to 50 greenfield
airports by 2025

– Kapil Kaul

LEfT: The AAI invested 125
billion rupees in upgrading
Chennai, Kolkata (pictured)
and 35 non-metro airports.
However, recently the Indian
government has sought bids
from private companies to
develop and manage them
Reduction in passenger traffic, slow time. Many observers think that increasing of Singapore’s Changi and Dubai airports.
downs in freight traffic, waning interest of flying rights between India and Abu Dhabi We created a hub for India in Dubai by
retail players and the cost of jet fuel have is likely to take away Indian air traffic from allowing Emirates so many rights to
all taken their toll on a positive outlook current hub airports, not only harming the India. Now we are making another hub in
for airport development. From a short- airports but also some airlines, especially Abu Dhabi. This cannot be allowed,” says
to medium-term point of view, additional national carrier Air India. one AAI official.
key concerns for airports are regulatory “With the expanded capacity in the As well as private airport operators,
uncertainty regarding airport projects and sector, Etihad (Abu Dhabi’s national AAI has invested heavily in the
slowdown in passenger and cargo growth. carrier), which has just bought a 24% modernisation of India’s gateway
Any negative changes in these are likely to stake in domestic carrier Jet Airways, airports which are by now well-equipped
substantially impact the airport operators. wants to connect the country with 23 to handle large scale transfer traffic.
smaller Indian cities. It doesn’t take great “The two major gateway airports Delhi
The big hurdles wisdom to realise what will happen in the and Mumbai currently account for
Although traffic figures have shown a days to come,” Bhandari observes. He over 50% of international capacity. The
positive trend for a while, there have been says that passengers from smaller cities development of a hub at closer proximity
short- and medium-term exceptions, will fly straight to Abu Dhabi and then would adversely impact further growth of
which have led to a reduction in traffic and onwards to their destination in Europe, these gateways as hubs,” a spokesman
more importantly, losses for operators. Africa or the United States on-board Jet or of GMR Infrastructure, which runs Delhi
GMR-led Delhi International Airport has Etihad flights. “There would be no need for and Hyderabad airports, points out.
plans to make India the hub of traffic them to come to Delhi or Mumbai. These The writing is on the hangar wall in
between Africa and China and between airports could see a decline in business,” India. More capacity is needed, more
Russia and Europe and Southeast Asia. Bhandari observes. investment is needed, and a more
As Bhupesh Bhandari, a senior editor Many of India’s airlines and airports coherent planning approach is needed.
and columnist with Business Standard opposed the government’s decision to The question is, can the government pull
newspaper, writes, private companies increase the number of seats between all the strands together, come up with
have invested large sums of money in Abu Dhabi and India by almost 400%, as a serious plan and even more critical,
modernising the Delhi and Mumbai with major airport hubs emerging in West convince investors the plan will work?
airports. But a recent decision by the civil Asia and Europe, not far from India, there Time will tell, but in the meantime,
aviation ministry could stymie all their will be serious business threats to the Indian skies will become more crowded as
plans. The government has signed an Delhi and Mumbai airports. deregulation bites deeper. And the ground
agreement with Abu Dhabi to increase air “Increasing bilateral rights between facilities will become ever more stretched,
capacity between the two countries from India and Abu Dhabi will hamper plans to bringing even more frustration and
13,000 seats a week to 50,000 in three years’ make Delhi a world-class hub on the lines hardship to long-suffering passengers.
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