INDIA’S AIRPORTS CAN HANDLE 500 MN TRAVELLERS BY 2

The modernisation-cum-expansion plan of AAI includes modernization of 35 non-metro airports, development of 14 greenfield airports and revival of 28 non-operational airstrips for non-scheduled operations. “We are currently modernising 35 non-metro airports. Moreover, work on two major airports – Chennai and Kolkata is progressing and we will hopefully commission Chennai by December and Kolkata by March next year,” V P Agrawal, Chairman, AAI said. Moreover, AAI is also developing 14 greenfield airports at major tourist destinations in country. Apart from these, the Authority is also planning to revive 28 out of 40 non-functional airstrips in the country. “We have a definite plan of reviving the unused airstrip. We will start with putting up a temporary structure and further investments will be made depending on the need and commercial viability. Our objective is to provide air connectivity to all smaller cities with metros,” he added. According to him, AAI is planning to develop are Jharsuguda, Akola, Pantnagar, Muzaffarpur and Malda airstrips among others. “The domestic aviation sector is poised to grow very rapidly in the coming years and we need well equipped airports to cater to the growing demand. We expect smaller cities and towns to spur the overall domestic air traffic growth,” he said. The execution of these plans need massive investment and AAI is looking at various ways to raise the money. “We had spent Rs 3,534 crore in the 10th Plan and Rs12, 964 crore during the 11th Plan. We have proposed to increase our investments to Rs 15,000 crore during the 12th plan,” he said. Ear l ier , AAI was planning to raise Rs 5,000 crore through tax-free bonds but did not get the nod of the finance ministry. “There are costs implications on borrowings that eventually get passed to passengers,” he said and hence, AAI was restricting its borrowing requirements, instead r e l y i n g l a r g e l y o n internal resources. These plans are aimed at catering the growing requirements of civil aviation industry. As per the plan, India will have 150 airports by 2030 compared to 90 airports at present. “These airports would have total capacity of handling about 500 million passengers per year. We are growing ahead of the demand,” Agrawal said adding that there should be approximately 30 per cent gap between supply and demand of airport capacity. H e also informed that India’s fleet size will also increase to 2000 aircraft from the current level of 700 aircraft. Currently, India has the capacity to handle 162 million passengers annually at all airports in the country as against a prevailing demand of 95 million passengers. He informed that 82 foreign airlines from 49 countries are operating to and from India. According to him, India will become the third largest aviation market in the world by 2030 from the ninth biggest aviation market as of today. “Given this situation, we need to create capacities for meeting future demand. Not all of them will be immediately profitable but they will make break even if the current pace of growth sustained,” he opined. Replying to a question over the creation low cost airports for low cost carriers, he said that this was not possible as the cost of Air Traffic services, maintenance and security of airports can not be compromised.