Airlines to have more say on new low-cost airports

To ensure airports don't become dormant assets

The government is set to allow airlines have a greater say while deciding locations for new no-frills airports. This is to ensure that the Narendra Modi government's grand plan of developing regional connectivity by building low-cost airports does not produce dormant assets.

Under this plan, airlines will be asked to submit a detailed plan on the viability of the location, following which the ministry will consult the government of the state where the airport will be built. A senior civil aviation ministry official said airlines will be asked to furnish specific details like the capacity they want to deploy, type of aircraft they will fly and expected occupancy levels. "This will help us decide whether the players themselves are interested in developing the route," the official said.

The draft civil aviation policy had mooted the idea of developing no-frills airports to boost regional connectivity. "New airports that will be built should be demand driven. Developing infrastructure without knowing its potential does not make any sense," said Rajiv Nayan Choubey, secretary, civil aviation.

According to data provided by Minister Ashok Gajapathi Raju in Parliament, there are 30 airports in the country from which no aircraft took off or landed after these became operational. In 2014-15 and 2013-14, these airports earned a revenue of Rs 0.69 crore and Rs 0.40 crore and incurred an expenditure of Rs 11.13 crore and Rs 12.97 crore, respectively. Beside these, there are 25 airports termed operational that see no flights as airlines don't find the locations viable.

A senior airline executive said the "ghost airports" were the result of minimal consultations with airlines. "Airports Authority of India (AAI) is not competent enough to decide the strategic location or viability of airports, many times location of regional airports is influenced by political reasons. Involving airlines is a positive step," the executive said. While presenting the Budget for 2016-17, Finance Minister Arun Jaitley had said the government was drawing up an action plan for revival of around 160 airports.

According to experts, the decision to make airlines a major part of the stakeholders' consultation process should be made mandatory. "Till date consultations with airlines regarding airport infrastructure has been inadequate or missing, no matter how critical the project is, this has resulted in a waste of taxpayer money," said Kapil Kaul , chief executive officer, South Asia of consultancy firm CAPA.